Question

A company experiences a stock split due to poor performance. Ariana's initial investment

was a purchase of 50 stocks at $12.99 per share. The reverse split is 1:2.
How many stocks does Ariana own after the stock split?​

Answer 1

The answer is below for the people with no time to read

25

Answer 2

Answer: 25

Step-by-step explanation:

Given, A company experiences a stock split due to poor performance. Ariana's initial investment was a purchase of 50 stocks at $12.99 per share.

Value of her shares = 50 x $12.99

= $649.50

The reverse split is 1:2 means the number of shares split into half but the total value of her shares remains the same.

i.e. Ariana owns 50/2=25 stocks after the stock split.

Hence, Ariana owns 25 stocks after the stock split.