Stock splits are:
A)a sign that the company is in need of more financial capital
B)a sign that the company's stock price is too low.
C)a sign that the company wants to get its stock price to a more desirable trading level.
D)a sign that the company cannot pay its stock dividend.

Question

Quizplus · Accepted Answer

Stock splits are often used by companies to make their stock more affordable and attractive to potential shareholders. This can increase demand for the stock and potentially result in a higher stock price in the long term. It is not a sign of financial need or an inability to pay dividends, nor is it necessarily an indication that the stock price is too low.

Stock Splits Are