Answer:
Not affected
Step-by-step explanation:
Given: Shortly after Samantha sold her shares, the price per share increased by . Another investor in the corporation, Jeffrey, owned
shares of Graham Corporation. A
reverse stock split was announced.
To Find: how was Jeffrey financially affected by the split.
Solution:
Number of shares Jeffrey had
Let the stock value of share after Samantha sold her share
Total value of Jeffrey's shares
As a for
stock split was announced
Each share is merged into
shares and value of share is increased in respective ratio such that
Now,
Number of share Jeffrey had after split
Stock value of share after split
Total value of Jeffrey's shares
As the value of Jeffrey's stock before and after split is same therefore Jeffrey is not financially affected by the split.