Poff Industries' Stock Currently Sells for $120 a Share

question 45

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.

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