What Is the Most Probable Reason for Stock Splits

question 4

Multiple Choice

What is the most probable reason for stock splits?

• A)The economic benefit for the firm
• B)The increase in the number of shares where the price stays the same
• C)Manipulate the market price of the shares
• D)Avoid the payment of dividends

---

Definitions:

Furuncles

Also known as boils, these are painful, pus-filled bumps under the skin caused by infected hair follicles.

Friction

The resistance that one surface or object encounters when moving over another, often producing heat.

Diluted Bleach

A solution made by mixing bleach with water, used to disinfect surfaces and remove stains by killing germs.

Lyme Disease

An infectious disease spread by ticks, characterized by symptoms like rash, fever, and fatigue, and if untreated, can spread to joints, the heart, and the nervous system.