Stock splits confer no direct economic benefit on shareholders. They do, however, keep share price within a "trading range" that makes the stock accessible to small investors, which is likely to exert a mild upward pressure on price.

Question

Quizplus · Accepted Answer

Stock splits do not affect the total value or worth of a shareholder's investment, but they do make the stock more affordable for smaller investors by lowering the share price, which can lead to increased demand and a potential increase in price.

Stock Splits Confer No Direct Economic Benefit on Shareholders