Question

An investor bought 40 shares of ABC corporation's stock at $80 a share. Two weeks later, the investor receives notice that the corporation has approved a 2-for-1 stock split. Based on this information, the investor would own at the moment of the split A: 20 shares of the stock and the price of each share is $80. B: 40 shares of the stock and the price of each share is $40. C: 80 shares of the stock and the price of each share is $40. D: 80 shares of the stock and the price of each share is $80.

Answer 1

The correct answer is C: 80 shares of the stock and the price of each share is $40.