- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 8. Equity Valuation: Concepts and Basic Tools
- Subject 2. Background for the Dividend Discount Model
CFA Practice Question
A 1:2 split: I. is a stock split.
II. is a reverse stock split.
III. means a shareholder gets half as many shares, but at twice the price.
IV. means the holder of 1 share will get additional 1 share.
Correct Answer: II and III
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