Common Stock
After a 3-for-1 stock split, an investor who owned 100 shares at $90 per share will have:
In a 3-for-1 stock split, the number of shares triples and the price is divided by 3. The investor would have 300 shares (100 x 3) at $30 per share ($90 / 3). The total value remains $9,000 before and after the split.
Complete Analysis & Legal Rationale
In a 3-for-1 stock split, the number of shares triples and the price is divided by 3. The investor would have 300 shares (100 x 3) at $30 per share ($90 / 3). The total value remains $9,000 before and after the split.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.