A reason often given for a stock split is:

Question

Quizplus · Accepted Answer

A stock split is often used to reduce the market price of the stock, making it more attractive to a wider range of investors. By increasing the number of outstanding shares, the price per share decreases, making it easier for investors to buy in at a lower price point. It doesn't have anything to do with protecting the interest of creditors or increasing the par value of the stock, nor is it directly related to absorbing treasury stock.

A Reason Often Given for a Stock Split Is