One Reason Why a Company May Choose a Stock Split

question 108

True/False

One reason why a company may choose a stock split over a stock dividend is that the stock split does not reduce retained earnings.

---

Definitions:

Trade Surplus

A situation in which a country's exports exceed its imports.

Exports

Goods or services sent from one country to another for sale or trade.

Imports

goods or services brought into one country from another for sale, often influencing the domestic market's supply and price levels.

Trade Surplus

This occurs when a country's exports exceed its imports, indicating a positive balance of trade.