If the Board of Directors Approves a Two-For-One Stock Split,an

question 67

Multiple Choice

If the board of directors approves a two-for-one stock split,an investor who owns 150 shares before the split will own ____________ shares after the split.

• A)75
• B)150
• C)225
• D)300
• E)450

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Definitions:

Invest

To allocate money in the expectation of some benefit in the future.

Investment Plan

A strategy developed by individuals or financial advisors to allocate assets with the goal to meet future financial goals.

Expense

Costs or charges incurred in the operation of a business or the execution of a transaction.

RRSP

Registered Retirement Savings Plan, a Canadian investment vehicle for individuals to save for retirement while taking advantage of tax deferrals.