What Is the Primary Reason for a Stock Split

question 121

Multiple Choice

What is the primary reason for a stock split?

• A)To distribute cash to the investor.
• B)To decrease the market value of the stock.
• C)To decrease the number of shares outstanding.
• D)To increase the capital stock of the corporation.

---

Definitions:

Suspensory Ligament

Fibrous tissues that connect organs or parts of organs to each other or to skeletal structures, often supporting or holding them in place.

Lens

A transparent structure inside the eye that focuses light rays onto the retina to create clear images.

Aqueous Humor

A clear fluid filling the space in the front of the eyeball between the lens and the cornea, involved in nutrient supply and intraocular pressure maintenance.

Vitreous Humor

The clear, gel-like substance that fills the space between the lens and the retina in the eye, maintaining its shape.