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.

---

Definitions:

Training Program

An organized and structured series of educational activities or resources designed to enhance the skills, knowledge, and efficiency of employees.

Cognitive Approach

A method in psychology that focuses on understanding how people process information, think, and learn, emphasizing mental functions.

Socialization

The process by which individuals learn and adopt the customs, values, and behaviors appropriate to their society or social group.

Values

Core beliefs or principles that guide and motivate attitudes and actions in individuals and organizations.