Even If a Stock Split Has No Information Content, and Even

question 48

True/False

Even if a stock split has no information content, and even if the dividend per share adjusted for the split does not increase, there can still be a real benefit (i.e., a higher value for shareholders) from such a split, but any such benefit is probably small.

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Definitions:

Confrontational

An approach or behavior characterized by direct opposition or challenge.

Harsh Discipline

Punitive measures used to correct or control behavior, often involving severity or strictness, that can have negative psychological impacts.

Affection

A feeling of fondness or liking for someone or something, often displayed through physical or verbal expressions.

Reactive Aggression

A form of aggressive behavior that is prompted in response to a perceived threat or frustration, often impulsive and emotional rather than premeditated.