You own 1,000 shares of Amazon,whose value just hit $1,500 per share.Amazon decides to do a three for one split.you now own?

Question

Quizplus · Accepted Answer

A three for one split means that each share is split into three, so for every one share you previously owned, you now own three. Therefore, your 1,000 shares would become 3,000 shares. However, the price per share is also reduced by a factor of three, so the new price per share would be $500 ($1,500 divided by three). Therefore, you now own 3,000 shares of Amazon at $500 per share, which is choice C.

You Own 1,000 Shares of Amazon,whose Value Just Hit $1,500