A company experiences a stock split due to poor performance. Ariana's initial investment was a purchase of 50 stocks at $12.99 per share. The reverse split is 1:2.
How many stocks does Ariana own after the stock split?

25

Explanation:

Given the following :

Initial stock purchase = 50

Reserve split ratio = 1:2

The scenario above describes a reverse split situation, during a reverse split, the number of shares owned by a company is reduced proportionately or merged based on a certain ratio. This usually occurs in other to create a smaller number of company shares with more value as the larger number of share s which previously existed had diminished in value.

Therefore in the scenario above, with a 1:2 reverse stock split; 2 shares are merged into 1 new share.

Therefore, Ariana's initial stocks of 50 becomes ;

50/2 = 25 new stocks