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The diagram below shows a set of budget lines facing a household. FIGURE 6-8
-Refer to Figure 6-8.The movement of the budget line from ab to ef could be caused by
Stock Split
A corporate action that increases the number of shares in a company by issuing more shares to current shareholders proportional to their ownership.
Market Value
The current value of an asset or company based on the price that it can be sold in the open market.
Paid In Surplus
The amount of money paid by investors for shares above their nominal value, representing additional contributed capital.
Stock Split
A corporate action in which a company divides its existing shares into multiple shares to boost the stock's liquidity, though the market capitalization remains the same.
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