Tangshan Mining Has 100,000 Shares Outstanding and Just Declared a 2-For-1

question 116

Multiple Choice

Tangshan Mining has 100,000 shares outstanding and just declared a 2-for-1 stock split. Before the announcement, the firm's shares were trading at $50.00 per share. After the stock split, the firm's shares should trade at ________ per share.

• A) $100.00
• B) $25.00
• C) $50.00
• D) $75.00

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Definitions:

Public Markets

Places or platforms where securities, commodities, or other financial instruments are bought and sold openly, involving a wide range of investors.

Seasoned Equity Offering

The process of offering additional shares for sale by a company that has already gone public.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, now held in the company's treasury.

Private Offering

The sale of securities or investment stakes not offered through a public exchange, typically to a small number of chosen investors.