You currently own 100 shares of stock in Beverly Brothers Inc. The stock currently trades at $120 a share. The company is contemplating a 3-for-1 stock split. Which of the following best describes your position after the proposed stock split takes place?

Question 4 options:

1)	You will have 300 shares of stock, and the stock will trade at or near $120 a share.

2)	You will have 300 shares of stock, and the stock will trade at or near $40 a share.

3)	You will have 100 shares of stock, and the stock will trade at or near $40 a share.

4)	You will have 50 shares of stock, and the stock will trade at or near $120 a share.

5)	You will have 50 shares of stock, and the stock will trade at or near $40 a share.