Which of the Following Is NOT a Valid Reason for a Stock

question 177

Multiple Choice

Which of the following is NOT a valid reason for a stock split?

• A)to increase the shareholder base by increasing the number of shares outstanding and
• Making them more marketable
• B)to reduce the market price of the shares so that more individuals can afford to invest in
• The shares
• C)to increase the market price of the shares to make the stock more attractive
• D)to reduce the market price of the shares to make the stock more attractive

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Definitions:

Imperfect Competitor

An entity in a market that does not hold enough power to dictate the conditions of the market but can influence the price and output of its goods to some extent.

MRP

Marginal Revenue Product, the additional revenue generated from employing one more unit of a factor of production.

Unit of Input

The smallest measure of an input (like labour, materials) used in the production of goods or services.

Complementary Resources

Assets or inputs that are used together with another resource to produce a good or service, enhancing each other's value in the process.