Answer: 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
