When a share price of a company has increased hugely compared to the prices of most other shares on the exchange and its liquidity has decreased,the directors may decide to:

Question

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When a share price has increased significantly, but the liquidity has decreased, it may become difficult for the company to find buyers for its shares. By splitting the number of shares on issue, the company can lower the share price and make it more affordable for investors, which can increase liquidity and attract more buyers. A bonus issue, declaring increased dividend or lowering the dividend may not directly address the issue of share price and liquidity.

When a Share Price of a Company Has Increased Hugely