When a Corporation Declares a Stock Split, It Usually Does

question 28

Multiple Choice

When a corporation declares a stock split, it usually does so because

• A) there are too many shares outstanding.
• B) investors sometimes require nontaxable returns.
• C) the share price is too high.
• D) the firm's retained earnings are excessive.

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Definitions:

Childproof Caps

Safety-designed caps used on medicine and hazardous substance containers to prevent access by children.

Mandatory Helmets

Laws or regulations requiring the wearing of helmets for certain activities, such as bicycling or motorcycle riding, to reduce the risk of head injuries.

Firearms

Weapons that launch one or more projectiles at high velocity through the confined burning of a propellant.

Immunizations

The method of providing immunity or resistance to infectious diseases in individuals, usually through the application of vaccinations.