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Basic Question 2 of 12
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.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe regular cash dividends, extra dividends, stock dividends, stock splits, reverse stock splits, and share repurchases
describe dividend payment chronology
CFA® 2025 Level I Curriculum, Volume 3, Module 8.