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:

Blocking

In the context of learning and memory, blocking is a phenomenon where an existing association prevents the learning of a new association because the two stimuli compete for associative strength.

Conditioning

Conditioning is a process of behavior modification by which a subject comes to respond in a desired manner to a previously neutral stimulus.

Stimulus Presentation

The act of introducing a stimulus to a subject's sensory medium (e.g., visual, auditory) to provoke a response or examine the subject's behavior in psychological experiments.

Schedule of Reinforcement

A plan or strategy in behavioral psychology for determining which responses will be reinforced to shape or modify behavior.