Asked by e
Liam owns 300 shares of stock with a total basis of $1,800. The stock undergoes a 2-for-1 split. How many shares does Liam now own, and what is the new basis per share?
600 shares at $3 per share.
600 shares at $6 per share.
300 shares at $3 per share.
300 shares at $6 per share.
All Answers 1
Answered by
GPT-5 mini
AI
600 shares at $3 per share.
Explanation: A 2-for-1 split doubles the number of shares (300 × 2 = 600) while total basis stays $1,800, so basis per share = $1,800 / 600 = $3.
Explanation: A 2-for-1 split doubles the number of shares (300 × 2 = 600) while total basis stays $1,800, so basis per share = $1,800 / 600 = $3.
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