A reason often given for a corporate stock split is to:

Question

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A stock split is when a company increases the number of outstanding shares by issuing more shares to current shareholders. This does not change the overall value of the company or the ownership percentage of shareholders, but it does decrease the market price of the stock. This can make the stock more affordable for investors and potentially increase demand for it. Therefore, reducing the market price of the stock is a common reason for a corporate stock split.

A Reason Often Given for a Corporate Stock Split Is