If the Board of Directors Approves a Two for One

question 127

Multiple Choice

If the board of directors approves a two for one stock split, an investor who owns 200 shares before the split owns ____________ shares after the split.

• A)75
• B)200
• C)225
• D)400
• E)450

---

Definitions:

Stock Ownership

Holding shares in a company, which represent a portion of the company's capital and give certain rights to the shareholder.

Voting Rights

The ability of shareholders to vote on corporate matters, such as the election of the board of directors.

Management Control

Refers to the processes, policies, and procedures that are put in place by an organization's management to ensure that its goals and objectives are achieved efficiently and effectively.

Unethical Behaviour

Actions or practices that breach moral or professional conduct codes.