Series 7 - General Securities Representative Exam

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One of your clients owns 1500 shares of LMNOP stock. The current price is $2.50 per share. If QRS splits its stock 1-for-3 today, what is your client's position be after the split?

4500 shares trading at $0.83 per share
A
500 shares trading at $7.50 per share
B
4500 shares trading at $5.00 per share
C
500 shares trading at $0.83 per share
D

Explanations

This is a reverse stock split. Your client would now own 500 shares at the post split price of $7.50

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