Why Do Companies Sometimes Split Their Stock

question 104

Multiple Choice

Why do companies sometimes split their stock?

• A)It increases the price of each share.
• B)The firm's ownership structure increases.
• C)Stock prices may go down in the near future.
• D)Demand for the stock may become greater.

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Definitions:

Sedition Act

Historical U.S. legislation that made it a crime to speak, write, or publish "false, scandalous, and malicious" statements against the government.

Freedom of Expression

Freedom of expression is a fundamental human right that allows individuals to freely express their thoughts, ideas, and opinions without censorship or restraint.

Virginia and Kentucky Resolutions

Political statements drafted in 1798 and 1799, which argued that the states have the right to judge the constitutionality of federal laws.

Constitution

The fundamental laws and principles that prescribe the nature, functions, and limits of a government or another institution, particularly the Constitution of the United States which outlines the country's legal framework.