If You Own 200,000 Shares of Stock in a Company

question 127

Multiple Choice

If you own 200,000 shares of stock in a company with 8 million shares outstanding and the company issues an additional 2 million shares to its employees through a stock purchase plan,your ownership percentage:

• A)remains the same because the company now has more assets.
• B)falls from 2.5% to 2%.
• C)remains the same because the company now has fewer liabilities.
• D)increases because the company now has more stock outstanding.

---

Definitions:

Formally Defined

Specified or explained in a precise, detailed, and unambiguous manner, often within a specific context or for a particular purpose.

Two-person Career

A relationship dynamic where both partners actively support each other’s careers, often with one partner managing household and social obligations to enable the other’s professional advancement.

Extended Family Members

Relatives outside the immediate family, including grandparents, uncles, aunts, and cousins.

Company's Fourth-of-July

A celebration or event held by a company on or around the Fourth of July, typically to mark the United States Independence Day with various festivities.