If You Own 100 Shares in a Company That Announces

question 72

Multiple Choice

If you own 100 shares in a company that announces a 2-for-1 stock split (with no other announcement) ,you should

• A) be happy because your investment has doubled.
• B) be happy because you will be receiving cash from your investment as a result of the split.
• C) be sad because the value of your investment will decline because of the split.
• D) be indifferent because the overall value of your investment has not changed.

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Definitions:

Independent States

Sovereign entities that have control over their own territory, with the power to make and enforce laws, and engage in relations with other states.

Bicameral Legislature

A legislative body consisting of two separate chambers or houses, typically an upper and a lower house, each with distinct powers and responsibilities.

Executive Branch

The branch of the United States government responsible for enforcing laws; it is led by the President and includes the cabinet and federal agencies.

Articles of Confederation

The Articles of Confederation served as the first constitution of the United States, providing a framework for national government before being replaced by the U.S. Constitution.