If Jodi owns 200 shares of stock, a 2-for-1 stock split will double the value of her holdings.

Question

Quizplus · Accepted Answer

A stock split does not affect the value of the holdings, it only increases the number of shares owned while decreasing the value per share. In a 2-for-1 stock split, Jodi would now own 400 shares, but each share would be worth half of what it was before the split. Therefore, the overall value of her holdings would remain the same.

If Jodi Owns 200 Shares of Stock, a 2-For-1 Stock