2006-10-17 10:47:32 · 4 answers · asked by a_alazmi 1 in Business & Finance ➔ Advertising & Marketing ➔ Other - Advertising & Marketing
If the split is 2:1 you would end up with 200 shares, if 1:2 you would end up with 50. One way decreases the value of each share, the other increases the value.
2006-10-17 11:08:17 · answer #1 · answered by WJVV 4 · 0⤊ 0⤋
WJVV is correct about the number of shares in question, but not the value. In theory, whether the stock splits 2:1 or reverse splits 1:2, the value of the company has not changed. Only the perception. Regular stock splits are viewed positively by the market, and vice versa for reverse splits. If you have 100 shares at $1 per share, your investment is worth $100. In a 2:1 split, you have 200 shares @ .50. In a 1:2 split, you have 50 shares @ $2. Both situations are still worth $100.
2006-10-17 11:19:04 · answer #2 · answered by morlock825 4 · 0⤊ 0⤋
100 shares 2:1 50 shares ----- 100 shares 1:2 200 shares
2006-10-17 15:05:03 · answer #3 · answered by money maker 3 · 0⤊ 0⤋
the inspiration of the inventory is your investment in the inventory. in case you paid $1500 for one hundred shares, your foundation is $15 consistent with proportion. If the inventory splits 3:2, you nevertheless paid $1500 yet now you have one hundred fifty shares. So your foundation is $10 consistent with proportion. foundation consistent with proportion = (value for the one hundred shares)/one hundred fifty
2016-10-19 21:45:51 · answer #4 · answered by templeman 4 · 0⤊ 0⤋