Products & RisksQuestion 2 of 125
An investor owns 100 shares of a company that declares a 2-for-1 forward stock split. After the split, the investor will own:
a.50 shares at twice the pre-split price
b.100 shares at the same price
c.200 shares at half the pre-split price
d.200 shares at the same pre-split price
Explanation
A 2-for-1 forward split doubles the number of shares while halving the per-share price, leaving total market value unchanged. The investor now holds 200 shares, each worth half of the prior price.
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