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:

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A process of cell division in eukaryotic cells that results in two genetically identical daughter cells from a single parent cell.

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In anatomy, a flat surface imagined to pass through the body, used as a reference point for anatomical descriptions.

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The body's heart and blood vessels network that circulates blood to deliver oxygen and nutrients to tissues.

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A muscular organ in the pelvic area that holds urine from the kidneys before urination.