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:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive.

Allocative Efficiency

A state of resource distribution where it is impossible to make any one individual better off without making someone else worse off.

Productive Efficiency

A situation in which an economy or entity is producing goods and services at the lowest possible cost, utilizing all its resources efficiently.