Idle Time Gaming Announced a 2-For-1 Common Stock Split for Investors

question 79

Multiple Choice

Idle Time Gaming announced a 2-for-1 common stock split for investors on record. Which of the following will occur?

• A) The stock price will increase to reflect the value of two shares for every one share.
• B) Each share will be worth ½ of its previous value, but shareholders' total value of Idle Time Gaming will remain the same.
• C) The value of Idle Time common stock will remain the same, for a short period of time, and then experience a guaranteed growth spurt.
• D) The shareholders will sell their shares immediately after the split and take their capital gains, as well as provide others an opportunity to invest in Idle Time Gaming.

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Definitions:

Coevolution

The process by which two or more species influence each other's evolutionary development through reciprocal selective pressures.

Competitive Force

A factor that influences the competitive position of a company within any given industry.

Adaptations

Traits or behaviors developed over time by organisms in response to their environment, enhancing their survival and reproductive success.

Species Richness

The number of different species present in an ecological community, reflecting its biodiversity.