Gerald owns 465 shares of stock, with a basis of $2,831. The stock split 3 for 1. Gerald now owns shares at per share.

Gerald now owns 1,395 shares at $2.03 per share.

Explanation:

Gerald originally owned 465 stocks, but after the stock split he will own 465 x 3 = 1,395 stocks. His basis though will not change, it will be the same $2,831. So the basis per share = $2,831 / 1,395 stocks = $2.029 ≈ $2.03 per stock. Stock splits do not alter the basis of a portfolio, it only increases the total number of stocks.

d) social security number

let me know if i am correct or not, so i can edit the answer.

the answer is a.

by: nicholas dooley