Series 6 - Investment Company And Variable Contracts Products Representative Exam
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If a customer places an order to buy 200 shares of Big Company, Inc. stock at $60 and Big Company, Inc. declares a 2:1 stock split:
The order will be adjusted to buy 400 shares at $30
A
The order will be placed as usual
B
The order will be canceled
C
The order will be adjusted to buy 100 shares at $60
D
Explanations
In a 2:1 stock split, the number of shares in an order are doubled and the price per share is halved.