Most stock splits
A) increase the number of shares outstanding.
B) increase the value of the company.
C) tend to raise the price of the stock.
D) all of the above.

Question

Quizplus · Accepted Answer

Most stock splits increase the number of shares outstanding, meaning that the existing shares are divided into a larger number of shares. This increases the liquidity of the stock and makes it more affordable for individual investors. However, a stock split does not necessarily increase the value of the company or raise the price of the stock.

Most Stock Splits