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

question 46

True/False

Even if a stock split has no information content, and even if the dividend per share adjusted for the split is not increased, 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:

Share Profits

The distribution of a portion of a company's earnings to its shareholders, typically in the form of cash payments or additional shares.

UCC

Represents the Uniform Commercial Code, a complete collection of legislation that regulates every commercial transaction across the United States.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that establishes a uniform international sales law.

Contracts for the Sale of Goods

Legal agreements pertaining to the transfer of ownership of tangible personal property from a seller to a buyer for payment.