You currently own 600 shares of stock AAA.  The stock currently trades at $3 a share.  The company is contemplating a 1-for-3 reverse stock split.  Which of the following best describes your position after the proposed stock split takes place?     You will have 200 shares of stock with $9 a share.     You will have 1,800 shares of stock with $1 a share.     You will have 200 shares of stock with $9 a share.     You will have 1,800 shares of stock with $9 a share.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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  1. You currently own 600 shares of stock AAA.  The stock currently trades at $3 a share.  The company is contemplating a 1-for-3 reverse stock split.  Which of the following best describes your position after the proposed stock split takes place?

       

    You will have 200 shares of stock with $9 a share.

       

    You will have 1,800 shares of stock with $1 a share.

       

    You will have 200 shares of stock with $9 a share.

       

    You will have 1,800 shares of stock with $9 a share.

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