You Currently Own 100 Shares of Stock in Beverly Brothers

question 11

Multiple Choice

You currently own 100 shares of stock in Beverly Brothers Inc. The stock currently trades at $120 a share. The company is contemplating a 2-for-1 stock split. Which of the following best describes your position after the proposed stock split takes place?

• A) You will have 200 shares of stock, and the stock will trade at or near $120 a share.
• B) You will have 200 shares of stock, and the stock will trade at or near $60 a share.
• C) You will have 100 shares of stock, and the stock will trade at or near $60 a share.
• D) You will have 50 shares of stock, and the stock will trade at or near $120 a share.
• E) You will have 50 shares of stock, and the stock will trade at or near $60 a share.

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Definitions:

Asymmetric Syncline

An asymmetric syncline is a fold in sedimentary layers that is uneven or lopsided, with one side of the fold having a gentler slope than the other.

Asymmetric Anticline

A fold in sedimentary layers that has unequal slopes on either side, typically illustrating differential stresses during its formation.

Plunging Syncline

A syncline structure where the fold axis is inclined, giving the impression of the layers diving underground.

Asymmetric Anticline

A geological fold that is asymmetrical, having two limbs of different lengths or slopes.