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vredina [299]
2 years ago
10

g The company plans a 4-for-1 stock split. How many shares will you own and what will the share price be after the stock split?

Business
1 answer:
Nata [24]2 years ago
7 0

Answer: 14,400; $17

Explanation:

Stock splits are a strategy by firms to increase the liquidity of their shares especially when they are trading at a high price. The firm divides the stock by a certain number thus increasing the number of shares by the multiple of the number. This action will divide the price of the stock and thus allow for more trade as they are cheaper.

A 4-for- stock split means that each share will become 4.

Your total number of share will become;

= 4 * 3,600

= 14,400 shares

The new price will be;

= 68/4

= $17 per share

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