Poff Industries' Stock Currently Sells for $120 a Share

question 22

Multiple Choice

Poff Industries' stock currently sells for $120 a share.You own 100 shares of the stock.The company is contemplating a 2-for-1 stock split.Which of the following best describes what your position will be after such a split takes place?

• A) You will have 200 shares of stock, and the stock will trade at or near $60 a share.
• B) You will have 100 shares of stock, and the stock will trade at or near $60 a share.
• C) You will have 50 shares of stock, and the stock will trade at or near $120 a share.
• D) You will have 50 shares of stock, and the stock will trade at or near $60 a share.
• E) You will have 200 shares of stock, and the stock will trade at or near $120 a share.