Understanding Stock Splits
Interactive Video
•
Business
•
9th - 10th Grade
•
Practice Problem
•
Hard
Jennifer Brown
FREE Resource
5 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What happens to the total value of a company's shares after a conventional stock split?
It decreases.
It increases.
It becomes unpredictable.
It remains the same.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why might a company decide to split its stock?
To reduce the number of shares.
To increase the stock price.
To decrease market liquidity.
To make shares more affordable for investors.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If you own a stock that splits, what happens to the total value of your shares?
It increases.
It becomes unpredictable.
It decreases.
It remains the same.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a reverse stock split?
A process where a company merges with another company.
A process where a company issues new shares to the public.
A process where a company decreases its number of shares to increase the price per share.
A process where a company increases its number of shares.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why might a company perform a reverse stock split?
To attract more investors by lowering the share price.
To meet exchange listing requirements.
To decrease the stock price.
To increase the number of shares.
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