Common Stock
An investor owns 200 shares of ABC Corp at $90 per share. After a 2-for-1 forward split, the investor will have:
Forward split: multiply shares, divide price. Total value stays same.
Complete Analysis & Legal Rationale
In a 2-for-1 forward split, shares double and price halves. The investor's 200 shares become 400 shares, and the $90 price becomes $45. Total value remains the same: 200 x $90 = $18,000 = 400 x $45 = $18,000.
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.
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.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.