Which of the following statements about stock splits is correct?
A) If a company has a 2-for-1 split, the price will be doubled.
B) If a company has a 3-for-1 split, the price will increase by a factor of 3.
C) If a company has a 4-for-1 split, the new number of shares will be four times as many as before the split.
D) If a company has a 5-for-1 split, the new number of shares will be equal to the old number of shares divided by 5.
E) None of these is correct.
Correct Answer:
Verified
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