Johnson had 22,000 shares in a blue chip company before a stock split of 2:1. How many shares does Johnson have after the stock split?
44,000
66,000
88,000
11,000
2 * 22 = 44 usually
Before the stock split, Johnson had 22,000 shares.
In a 2:1 stock split, each existing share is split into two new shares.
Therefore, after the stock split, Johnson will have twice the number of shares.
22,000 shares × 2 = 44,000 shares
So, Johnson will have 44,000 shares after the stock split.
Therefore, the correct answer is 44,000.
To determine the number of shares Johnson has after the stock split, we will divide his initial number of shares by the stock split ratio, which is 2:1.
The ratio 2:1 means that for every 2 shares before the split, you will have 1 share after the split.
In this case, Johnson had 22,000 shares before the split, so we divide this number by 2 to get the number of shares after the split:
22,000 shares / 2 = 11,000 shares
Therefore, Johnson has 11,000 shares after the stock split.
The correct answer is 11,000 shares.