Judy owns 425 shares of stock, with a basis of $2712. The stock split 3 to 1. Judy now owns what?

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Answer 1

Answer:

Explanation:If the stock split 3 to 1, this means that for every 1 share of stock that Judy owned, she now owns 3 shares. Since Judy owned 425 shares of stock before the split, she now owns 3 * 425 = 1275 shares of stock.

The basis of the stock, which is the original cost of the stock, does not change as a result of a stock split. Therefore, Judy's basis for the 1275 shares of stock is still $2712.

Answer 2

Based on the information, Judy now owns 1,275 shares and the price per share is $2.12

What is Stock?

The holding certificates of any corporation are referred to as "stocks".  Stocks signify ownership in a public company's business. The company's stock is made up of those little shares, and by purchasing stock in the company, you are depending on its long-term success and growth.

The quantity of outstanding shares increases by a fixed amount whenever there is a stock split. In the event of a 3 for 1 stock split, each shareholder will now own 3 shares instead of only 1.

Number of shares owned = 425 x 3 = 1,275 shares

The price of the stock decreases per share when there is a stock split.

Value per share = $2712 / 1,275 = $2.12

Hence, Judy currently owns 1,275 shares at a cost of $2.12.

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Related Questions

The threat, use, or conspiracy to use _____ within the United States or against an American citizen abroad is punishable under federal law.

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The threat, use, or conspiracy to use weapons of mass destruction within the United States or against an American citizen abroad is punishable under federal law.

The municipalities, states, and the federal government each tend to have their own criminal codes, which tend to define the  types of conduct that constitute crimes. So, the Title 18 of the U.S. Code outlines all the federal crimes.

However, a crime is an unlawful act which is said to be punishable by a state or the other authority. Thus, the use of mass destruction is said to be punishable under the federal law.

Hence, treason is the only crime which is defined in the U.S. Constitution.

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It is completely appropriate to mention that the purpose of the privacy function is providing the users a protection against the discoveries and misuse of their identities by third parties. Therefore, the statement given above holds true.

A privacy function can be referred to or considered as the one wherein the utmost level of privacy is provided to a user depending upon the use-case of each individual user. It can also be stated that the primary intention of the privacy function is to safeguard the interests of the user identity and providing due protection from misuse related thereunder.

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