Which of the following is a reason for a company to announce a stock split?
A) to reward investors
B) to increase total stockholders' equity
C) to decrease the market price at which the stock is trading
D) to provide the shareholders with something of value, when the company cannot afford a cash dividend

Question

Quizplus · Accepted Answer

A stock split is primarily done to decrease the market price of the stock, making it more accessible and attractive to a broader range of investors. It does not directly reward investors, increase total stockholders' equity, or provide shareholders with something of value in lieu of a cash dividend.

Which of the Following Is a Reason for a Company