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Mercury Homes Just Declared a 4-For-3 Stock Split

question 24

Multiple Choice

Mercury Homes just declared a 4-for-3 stock split.Which of the following occurred as a result of this split?
I.number of shares outstanding increased by 1/3
II.number of shares outstanding decreased by 1/4
III.price per share increased by 1/3
IV.price per share decreased by 1/4


Definitions:

Materially Overstated

A significant overestimation of financial figures, leading to inaccurate financial reporting.

Securities Act of 1933

A foundational U.S. law enacted to regulate the securities industry, requiring transparency through the registration and disclosure of information on securities offerings.

Professional Liability

A form of liability arising from the conduct of professionals such as doctors, lawyers, and accountants, due to negligence or malpractice in their professional duties.

Racketeer Influenced and Corrupt Organizations Act

A federal law aimed at combating organized crime in the United States by facilitating extended penalties for acts performed as part of a criminal organization.

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