Nathan noticed that a company that has great potential just declared a ________ because its stock price was getting too high for the small investor to buy the stock.The company will substitute more shares for the existing shares of stock without increasing the market value of the firm.

Question

Quizplus · Accepted Answer

A stock split is when a company increases the number of outstanding shares and decreases the price per share, without altering the value of the company. This makes the stock more affordable for small investors while maintaining the liquidity of the stock. Therefore, a stock split is the best choice for the given scenario.

Nathan Noticed That a Company That Has Great Potential Just