Wydex, Inc. stock 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:

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A stock split would reduce the market price per share and make it more affordable for the primary clientele to purchase a round lot of 100 shares within their budget range of $2,000 to $2,500. A reverse stock split would increase the market price per share, making it even more difficult for the primary clientele to purchase a round lot, while a liquidating dividend and a special dividend would not directly impact the market price per share. A stock dividend would increase the number of shares outstanding, but the market price per share would likely decrease as a result, and the primary clientele may still have difficulty purchasing a round lot at the new lower price.