SIE Exam Question 112: Answer and Explanation

Question: 112

If a company declares a 1:2 reverse stock split, how many shares will an investor with 200 shares own after the split?

• A. 100 shares
• B. 200 shares
• C. 300 shares
• D. 400 shares

Correct Answer: A

Explanation:

If a company declares a 1:2 reverse stock split, an investor with 200 shares will own 100 shares after the split.