What Effect Does a Stock Substitution or Stock Split Have

question 46

Multiple Choice

What effect does a stock substitution or stock split have on a price-weighted series?

• A) Index remains the same; divisor will increase/decrease.
• B) Divisor remains the same; index will increase/decrease.
• C) Index and divisor will both remain the same.
• D) Index and divisor will both reflect the changes (immediately).
• E) None of these are correct.

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Definitions:

Cell Link

A reference or connection from one cell to another in a spreadsheet, allowing data in one cell to reflect or affect the data in another.

Record Macro

The process of creating a script that records and replicates a series of user actions to automate repetitive tasks within software applications.

Flash Fill

A feature in spreadsheet software that automatically fills in values based on a pattern recognized from neighboring data.

AutoFill List

A feature in spreadsheet and form software that automatically completes a field based on previously entered data.