Wydex equity 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 decrease the market price of each share, making it more affordable for the target clientele to purchase a round lot of shares within their price range of £2,000 to £2,500. A reverse stock split would increase the market price of each share, which would not be beneficial in this scenario. Liquidating or special dividends do not directly impact the market price of the stock and would not address the issue of affordability for the target clientele. A stock dividend would increase the number of shares outstanding but would not necessarily address the issue of affordability for the target clientele.

Wydex Equity Is Currently Trading at £82 a Share