Question

Assume that you own 1,500 shares of $10 par value common stock and the company has a 5-for-1 stock split when the market price per share is $30. How many shares of common stock will you own after the stock split?

Answer 1

After the stock split, I would have 7500 shares

A stock split is a method by which a company increases the number of its shares outstanding. A stock split leads to a fall in the price per share of the company. A stock split does not have any effect on the market capitalisation of a firm.

A five for one split means that for every one stock a shareholder owns, it is multiplied by 5

Number of stocks a shareholder has after a 5-for-1 stock split = 5 x number of stocks the shareholder had before the split

5 x 1500 = 7500 shares

To learn more about stock splits, please check: brainly.com/question/15685682?referrer=searchResults