You Own 100 Shares of Troll Brothers' Stock, Which Currently

question 4

Multiple Choice

You own 100 shares of Troll Brothers' stock, which currently sells for $120 a share. The company is contemplating a 2-for-1 stock split. Which of the following best describes what your position will be after such a 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.

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Definitions:

Red-tinted Glasses

Glasses with lenses that are tinted red, which can influence perception and mood, sometimes used experimentally to study the effects of colored light on human behavior.

Green Apple

A variety of apple that is generally green in color, often with a tart flavor, used both in cooking and consumed raw.

Trichromatic Theory

A theory of color vision that explains how humans perceive color through the response patterns of three types of cones in the retina, sensitive to short, medium, and long wavelengths of light.

Three Types Of Cones

Refer to the photoreceptor cells in the retina of the eye responsible for color vision; they are sensitive to different wavelengths of light (long, medium, and short) corresponding to the colors red, green, and blue.