Stock 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 stock split. How many shares will you own after the split, and approximately what will your holdings in Split Holdings Co be worth?

Question

Quizplus · Accepted Answer

After a 4-for-1 stock split, you will own 4 times the number of shares, so 3,000 shares become 12,000 shares. The price per share will be approximately $48/4 = $12, so the total value remains about $144,000.

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