Wydex equity is currently trading at £82 a share.The ﬁrm feels that its primary clientele can afford to spend between £2,000 and £2,500 to purchase a round lot of 100 shares.The ﬁrm should
Consider a:

Question

Quizplus · Accepted Answer

A stock split would increase the number of shares outstanding and decrease the price per share, making it easier for the firm's primary clientele to afford a round lot of 100 shares. This would allow more investors to purchase shares and potentially increase the liquidity of the stock. A reverse stock split would have the opposite effect, reducing the number of shares outstanding and increasing the price per share, which would not be helpful in this scenario. Liquidating and special dividends involve distributing cash to shareholders, which would not address the issue of affordability for round lots of shares. A stock dividend would increase the number of shares outstanding without changing the price per share, which could further exacerbate the issue of affordability for round lots.

Wydex Equity Is Currently Trading at £82 a Share