If John owns 5% of XYZ corporation before its 2 for 1 stock split,John will own 5% of XYZ corporation after the stock split as well.

Question

Quizplus · Accepted Answer

A stock split does not change the percentage of ownership in a company. If a shareholder owns 5% of a company before a 2 for 1 stock split, they will still own 5% of the company after the split. However, the number of shares owned will increase, but relative ownership percentage remains the same.

If John Owns 5% of XYZ Corporation Before Its 2