Examlex
Use the table for the question(s)below.
Consider the following stock price and shares outstanding data:
-Assume that you have $250,000 to invest and you are interested in creating a value-weighted portfolio of these four stocks.How many shares of each of the four stocks will you hold? What percentage of the shares outstanding of each stock will you hold?
Market Price
The current value at which an asset or service can be bought or sold in the marketplace.
Shares Outstanding
The total number of a company's shares that are currently owned by all its shareholders, including those held by institutional investors and restricted shares held by company’s insiders.
Stock Split
A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of one's holdings remains the same.
Shareholder Wealth
The total value of a shareholder's equity in a company, taking into account the current market value of shares owned.
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