When a Stock Splits Two-For-One,you Should Expect the Price Per

question 52

Multiple Choice

When a stock splits two-for-one,you should expect the price per share to:

• A)decrease to half its pre-split price.
• B)decrease in value by 75 percent or more.
• C)remain unchanged.
• D)increase to more than twice its pre-split price.
• E)increase to twice its pre-split price.

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Definitions:

Technical Analyst

A professional who evaluates securities or market trends based on historical price and volume data to predict future movements.

Passive Approach

An investment strategy that aims to replicate the performance of a market index or benchmark, minimizing buying and selling actions to reduce costs.

Efficient Market

An economic theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market.

Market Efficiency

The extent to which stock prices reflect all available, relevant information, making it impossible to consistently achieve higher returns without assuming additional risk.