Asked by Vaisakh Mukundanunni on Jul 04, 2024
Verified
The main purpose of a stock split is to
A) decrease the marketability of the stock by increasing the price.
B) increase the marketability of the stock by increasing the price.
C) increase the marketability of the stock by decreasing the price.
D) reduce the number of issued shares.
Stock Split
A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.
- Gain insights into how stock splits and stock dividends influence the balance of retained earnings and the composition of equity.
Verified Answer
EA
Emilio Augusto Mendes MachadoJul 08, 2024
Final Answer :
C
Explanation :
A stock split increases the marketability of the stock by decreasing its price, making it more accessible to a broader range of investors.
Learning Objectives
- Gain insights into how stock splits and stock dividends influence the balance of retained earnings and the composition of equity.
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