In a Three-For-Two Stock Split for a Company That Previously

question 65

Multiple Choice

In a three-for-two stock split for a company that previously had 1 million shares outstanding selling at $100 per share and a total market value of $100 million,which of the following is true?

• A) The number of outstanding shares will drop to 666,666, and the stock price will increase to $150.
• B) The number of outstanding shares will increase to 1.5 million, and the stock price will drop to $66.67.
• C) The number of outstanding shares will increase to 1.5 million, and the stock price will rise to $133.33.
• D) The market value of the firm will increase.

Describe the stages involved in the memory process (encoding, storage, retrieval).

Explain the serial position effect and its relevance to memory.

Identify factors affecting the reliability of eyewitness testimony.

Understand the concepts and applications of memory models (information-processing model, Atkinson and Shiffrin model).

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Definitions:

Uncovered Put

A type of options strategy where the seller (or writer) of a put option does not hold a short position in the underlying stock, leading to higher risk if the option is exercised.

Uncovered Call

An uncovered call is an options strategy where the seller sells call options without owning the underlying securities, exposing the seller to unlimited risk.

Strike Price

The price at which a derivative contract can be exercised, specifically referring to the price at which the holder of an option can buy (call option) or sell (put option) the underlying asset.

Listed Options

Contracts traded on a stock exchange that give buyers the right, but not the obligation, to buy or sell a security at a specified price within a certain time period.