The Primary Purpose of a Stock Split Is to Reduce

question 119

True/False

The primary purpose of a stock split is to reduce the number of shares outstanding in order to encourage more investors to enter the market for the company's shares.

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Definitions:

Two-tailed Test

A two-tailed test is a statistical test in which the area of interest is in both tails of the probability distribution, allowing for the testing of both directions of an effect.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, typically tested against an alternative hypothesis in statistical analysis.

Equality

The state or quality of being equal, especially in status, rights, and opportunities.

Population Variances

A measure of the dispersion of a set of data points in a population data set.