Question

1. An investor owns 250 shares of ABC Company stock and its shares are trading at
$80 per share. The company does a stock split of 2:1. How many shares will the
investor now own? What will be the price per share?
E COE

Answer 1

The companies will own 125 shares

Price will be 40$ per share

stock split of 2:1 is there then 250 is divided by 2 ie 125 shares each.

2:1 means for every 2 share now company will give you one single share

And as share price will also be reduced by half.