What is the most probable reason for stock splits?
A)The economic benefit for the firm
B)The increase in the number of shares where the price stays the same
C)Manipulate the market price of the shares
D)Avoid the payment of dividends

Question

Quizplus · Accepted Answer

Stock splits are primarily done to make shares more affordable to small investors and can increase the liquidity of the stock. This can indirectly influence the market price of the shares by making them more accessible, but it's not about manipulating prices in a deceptive manner. The other options do not accurately describe the primary reasons for stock splits.

What Is the Most Probable Reason for Stock Splits