Which of the Following Statements About Stock Splits Is Correct

question 121

Multiple Choice

Which of the following statements about stock splits is correct?

• A) If a company has a 2-for-1 split, the price will be doubled.
• B) If a company has a 3-for-1 split, the price will increase by a factor of 3.
• C) If a company has a 4-for-1 split, the new number of shares will be four times as many as before the split.
• D) If a company has a 5-for-1 split, the new number of shares will be equal to the old number of shares divided by 5.
• E) None of these is correct.

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Definitions:

Symbolic Fitting In

The concept where individuals use brands or products as symbols to align themselves with specific social groups or statuses.

Functional Benefits

The practical or utilitarian advantages that a product or service offers to its users, distinct from emotional or psychological benefits.

Collective Identity

The shared sense of belonging to a group, defined by mutual interests, values, cultural practices, or viewpoints, contributing to the cohesion and solidarity among its members.

Subcultures

Groups within a larger culture that have their own distinct norms, values, and lifestyles.