A Firm's Stock Sells for $100 a Share

question 40

Essay

A firm's stock sells for $100 a share. What will be the price after a
a. two-for-one split
b. four-for-one split
c. one-for-two reverse split?

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Definitions:

Privately Held Corporation

A company whose ownership is private, meaning its stock is not traded on public stock exchanges and is held by a limited group of shareholders.

New York Stock Exchange

A marketplace where securities, including stocks and bonds, are bought and sold.

Closely Held

A business owned by a limited number of shareholders with no public market for its shares.

No-Par Stock

Shares issued without a par value, which means their face value is not fixed in the stock certificate, enabling more flexibility in setting the share prices.