Series 7 - General Securities Representative Exam
Kate owns 2500 shares of QRS stock at a current price of $100 per share. If QRS splits its stock 4-for-1 , what would Kate's position be after the split?
10,000 shares @ $400.00 per shareA
10,000 shares @ $25.00 per shareB
625 shares @ $62.50 per shareC
625 shares @ $25.00 per shareD
A 4 for 1 split is a forward stock split (not reverse). So, Kate would have 10,000 shares @ $25 per share