The stock in your portfolio was selling for $40 per share yesterday,but has today declared a three-for-two split.Which of the following statements seems to be true?

Question

Quizplus · Accepted Answer

A three-for-two split means that for every two shares you own, you will receive three more shares. So if you originally owned 100 shares, you would now own 150. However, since the price per share is also affected by the split, the new price per share would be $40/1.5 = $26.67. Therefore, there will be 50% more shares outstanding (option C), and they will sell for $26.67 each.

The Stock in Your Portfolio Was Selling for $40 Per