Share splits: You own 3,000 shares of Split Holdings Co. The shares are currently selling for $48. The company has just announced a 4-for-1 share split. How many shares will you own after the split, and approximately what will your holdings in Split Holdings Co be worth?
A) 12,000 shares worth about $144,000
B) 12,000 shares worth about $576,000
C) 3,000 shares worth about $144,000
D) 3,000 shares worth about $576,000

Question

Quizplus · Accepted Answer

After the split, you will own 12,000 shares (3,000 x 4). The value of each share will be adjusted to $12 ($48 / 4), so your total holdings in Split Holdings Co will be worth approximately $144,000 (12,000 x $12).

Share Splits: You Own 3,000 Shares of Split Holdings Co