What Effect Does a Stock Substitution or Stock Split Have

question 42

Multiple Choice

What effect does a stock substitution or stock split have on a price-weighted series?

• A) Index remains the same, divisor will increase/decrease.
• B) Divisor remains the same, index will increase/decrease.
• C) Index and divisor will both remain the same.
• D) Index and divisor will both reflect the changes (immediately).
• E) Not enough information is provided.

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