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Canadian Securities Course (CSC) Practice Exam · Question

An investor holds 100 shares of ABC Corp, trading at $50 per share. ABC Corp announces a 2-for-1 stock split. Immediately after the split, the investor will own:

A 2-for-1 stock split doubles the number of shares and halves the price per share, keeping the total value of the investment unchanged.

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Question: An investor holds 100 shares of ABC Corp, trading at $50 per share. ABC Corp announces a 2-for-1 stock split. Immediately after the split, the investor will own:

Answer options: ✅ 200 shares at $25 per share

  • 50 shares at $100 per share
  • 100 shares at $25 per share
  • 200 shares at $50 per share

Correct answer: 200 shares at $25 per share

Explanation: A 2-for-1 stock split doubles the number of shares and halves the price per share, keeping the total value of the investment unchanged.

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