Rosa Corporation's board of directors is concerned about the market price of each share of stock.They believe that the shares would be more marketable if the market price was closer to $18 a share.They shoultwo-for-one stockd initiate a ____ split.

Question

Quizplus · Accepted Answer

A two-for-one stock split would double the number of outstanding shares and therefore decrease the market price per share by half. This would make the shares more affordable to investors and potentially increase market demand, ultimately bringing the market price closer to the desired $18 per share. A three-for-one stock split or a reverse stock split (where the number of outstanding shares is reduced) would not necessarily achieve the same result.

Rosa Corporation's Board of Directors Is Concerned About the Market