How shares change after stock dividend

FINRA FINRA SIE
1

Continuing the discussion from Achievable Question Difficulty vs. Actual SIE Exam:

This question is regarding to the practice exam around stock dividend. Here is the question…

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And here is the explanation…
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Here is my confusion: To my understanding, stock dividends would increase more shares, but in the exam question it stated the customer has less shares last month, and the stock price dropped…
so I didn’t think that the answer would be stock dividend.
https://app.achievable.me/study/finra-sie/exams/ab5e2647-3a83-4b21-af45-56a65d270116

1 Like
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Hey Lashy, think the wording just tripped you up.

The customer owns 700 shares (now), and started with less shares last month.
And the stock price was higher last month, but has dropped and is now lower (at $62.20).

3

Oh Ok. lol

Thanks for the clarification. :smile: