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Zorluk: KolaySettlement Dates, Trade Confirmations, and Corporate Actions

An investor holds 400400 shares of common stock in a margin account, with the stock currently trading at a market price of $60\$60 per share. The issuing corporation declares and executes a 33-for-22 forward stock split. What is the new market price per share of the stock immediately following the stock split?

Cevap: 40 $

Cevap

The post-split price per share is $40\$40.
In a forward stock split, the total economic value of the investor's equity holding remains identical before and after the corporate action. The original position value was 400 shares×$60=$24,000400 \text{ shares} \times \$60 = \$24,000. Following a 33-for-22 split, the investor receives 33 shares for every 22 shares held, yielding 400×32=600400 \times \frac{3}{2} = 600 shares. To keep the total market value at $24,000\$24,000, the new share price must be $24,000600 shares=$40\frac{\$24,000}{600 \text{ shares}} = \$40 per share.

Adım Adım Çözüm

1
Determine the stock split factor for price adjustment.
In a 33-for-22 forward stock split, the number of shares increases by a factor of 32\frac{3}{2} (1.51.5), which means the price per share must decrease by multiplying by 23\frac{2}{3}.
Stock splits adjust share count and share price proportionally so that total position value remains unchanged.
2
Calculate the new price per share.
New price = $60×23=$40\$60 \times \frac{2}{3} = \$40.
The total value of the investor's position before the split (400 shares×$60=$24,000400 \text{ shares} \times \$60 = \$24,000) must equal the total value after the split (600 shares×$40=$24,000600 \text{ shares} \times \$40 = \$24,000).

Anahtar Kavram

Forward Stock Split Price Adjustment
Tahmini Süre:45s
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Konular

Settlement Dates, Trade Confirmations, and Corporate Actions