In a forward, regular, direct two-for-one stock split a shareholder with $5,000 in market value prior tothe split will have approximately $10,000 after the split.

Question

Quizplus · Accepted Answer

In a two-for-one stock split, the shareholder will have twice as many shares, but the market value per share is halved, keeping the total market value of their holdings approximately the same, around $5,000, not $10,000.

In a Forward, Regular, Direct Two-For-One Stock Split a Shareholder