A company experiences a stock split due to poor performance. Ariana's initial investment was a purchase of 50 stocks at $12.99 per share. The reverse split is 1:2.
How many stocks does Ariana own after the stock split?
6.5
150
25
50
100
ok "PrObLeM sOlVeR" 35 is not an answer buddy
Oh misread, one to two means 50 /2
To calculate the number of stocks Ariana owns after the stock split, we need to understand what a reverse split means. In a reverse split, the total number of stocks is reduced and the stock price increases. In this case, the reverse split ratio is 1:2, meaning for every 2 old stocks, Ariana will receive 1 new stock.
Before the split, Ariana owns 50 stocks. After the split, the number of stocks will be reduced by half since the reverse split ratio is 1:2.
To calculate the new number of stocks Ariana owns after the split, divide the initial number of stocks by the reverse split ratio:
50 stocks / 2 = 25 stocks
Therefore, Ariana owns 25 stocks after the stock split.
The correct answer is 25.
Two to one means multiply 50 by two
No Damon, it is 35. It okay, I know more than you :)
(LOLL IT'S A JOKE PLEASE DON'T COME AFTER ME)