Stock Splits: You Own 3,000 Shares of Split Holdings Co

question 82

Multiple Choice

Stock splits: You own 3,000 shares of Split Holdings Co. The shares are currently selling for $48. The company has just announced a 4-for-1 stock split. How many shares will you own after the split, and approximately what will your holdings in Split Holdings Co be worth?

• A) 12,000 shares worth about $144,000
• B) 12,000 shares worth about $576,000
• C) 15,000 shares worth about $144,000
• D) 15,000 shares worth about $720,000

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Definitions:

Compensation Strategy

A plan established by an organization to attract, retain, and motivate employees through monetary and non-monetary rewards.

Effective Compensation

A pay and benefits package designed to attract, retain, and motivate employees.

Senior Management

The group of top-level executives who are responsible for managing an organization and making crucial decisions.

Strategic Changes

Alterations in an organization's long-term goals, strategies, or policies intended to improve its competitive position or adapt to changes in its environment.