Stock a Has 10 Million Shares Outstanding and Stock B

question 75

Multiple Choice

Stock A has 10 million shares outstanding and stock B has 5 million shares outstanding.Both stocks sell for $10 a share.What is their relative weighting if both stocks are represented in the S&P 500?

• A) They have equal weighting, like all S&P 500 stocks.
• B) B has twice the weighting, to account for having fewer shares.
• C) A has twice the weighting, to account for having more shares.
• D) They are weighted according to their expected performance.

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Definitions:

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