The Purpose of a Stock Split Is to

question 94

Multiple Choice

The purpose of a stock split is to

• A) increase the market price of the stock.
• B) enhance the trading activity of the stock by lowering the market price.
• C) decrease the dividend.
• D) affect the firm's capital structure.

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Definitions:

Flight of Ideas

A thought disorder characterized by rapid shifts from one topic to another, often seen in manic states of bipolar disorder.

Loose Associations

A thought disorder characterized by a disorganized thinking process, evident when someone jumps from one idea to another with little logical connection.

Tangential

Diverging from the previous topic or path without reaching a definite goal or conclusion.

Poverty

A state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.