Mathematically Explain How a Stock Split Works If a Company

question 18

Essay

Mathematically explain how a stock split works if a company has 100,000 common shares outstanding that are trading at $100 per share.

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Definitions:

Reaction Formation

A defense mechanism where unacceptable impulses or feelings are transformed into their opposite.

Identification

A psychological process in which an individual associates themselves with certain groups, characteristics, values, or qualities of another person or entity.

Intellectualization

A defense mechanism where reasoning is used to block confrontation with an unconscious conflict and its associated emotional stress.

Sublimation

A defense mechanism where socially unacceptable impulses or idealizations are transformed into socially acceptable actions or behavior.