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Mathematics 21 Online
OpenStudy (anonymous):

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%

jimthompson5910 (jim_thompson5910):

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

OpenStudy (anonymous):

no lol i dont think so

jimthompson5910 (jim_thompson5910):

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

jimthompson5910 (jim_thompson5910):

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.

OpenStudy (anonymous):

oh ok thanks

jimthompson5910 (jim_thompson5910):

so what is the percentage he owns?

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