A Reason Often Given for a Corporate Stock Split Is

question 35

Multiple Choice

A reason often given for a corporate stock split is to:

• A) reduce the market price of the stock.
• B) protect the interest of creditors.
• C) increase the par value of the stock.
• D) absorb the treasury stock.

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Definitions:

Pay To The Order

A directive on a negotiable instrument, such as a check, indicating that the designated amount should be paid to the entity or person specified.

Drawer

The person who writes or issues a check, draft, or bill of exchange, thereby creating an obligation to pay.

Payee

The individual or entity to whom money is payable, typically the recipient of a check or electronic payment.

Demand Instrument

A financial document, like a check or promissory note, that is payable on demand or presentation.