If a company has 18,000 shares outstanding before a 3-for-1 stock split,then after the split they will have 6,000 shares outstanding.

Question

Quizplus · Accepted Answer

A 3-for-1 stock split means that for every one share owned, the shareholder will receive three new shares. Therefore, the total number of shares outstanding would increase, not decrease.

After the split, the company would have 54,000 shares outstanding (18,000 x 3), not 6,000 shares.

If a Company Has 18,000 Shares Outstanding Before a 3-For-1