A small company has 5000 shares. Lauren owns 200 of these shares. The company decides to split its shares. What is Lauren's ownership percentage after the split?

A. 2%
B. 5%
C. 4%
D. 10%

Question

A small company has 5000 shares. Lauren owns 200 of these shares. The company decides to split its shares. What is Lauren's ownership percentage after the split?

 		A.	2%
 		B.	5%
 		C.	4%
 		D.	10%

jim_thompson5910 · Answer

What is the split ratio? 

2 to 1?
3 to 1?
4 to 1?

or something else?

anonymous · Answer

no lol i dont think so

jim_thompson5910 · Answer

hmm it doesn't say, so there isn't enough info

jim_thompson5910 · Answer

oh I guess it doesn't matter http://en.wikipedia.org/wiki/Stock_split "The price is adjusted such that the before and after market capitalization of the company remains the same and dilution does not occur" Notice how the phrase "dilution does not occur" is in there.

anonymous · Answer

oh ok thanks

jim_thompson5910 · Answer

so what is the percentage he owns?