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:

Question

Quizplus · Accepted Answer

A stock split would increase the number of shares outstanding and reduce the par value per share, resulting in a lower trading price that may fall within the affordability range of the firm's primary clientele ($20 - $25 per share). This would make it easier for them to purchase a round lot of 100 shares for $2,000-$2,500. Therefore, a stock split is the best choice for the firm.

Wydex,IncStock Is Currently Trading at $82 a Share