teyannaharris5431 teyannaharris5431
  • 19-08-2019
  • Business
contestada

Jessica currently owns 500 shares of Alpha stock valued at $19 share. What will her investment in Alpha be worth if the company declares a 4-for-3 stock split?

Respuesta :

DelcieRiveria DelcieRiveria
  • 21-08-2019

Answer:

The investment worth will be $9,500.

Explanation:

The total value of the investment will not change.  The reason behind this is that a stock split only splits the face value and market to a lesser amount. The split will cause the number of shares to increase and market value of each share will decrease proportionately.

The investment worth will be

= 500×$19

= $9,500

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