The Main Purpose of a Stock Split Is To

question 155

Multiple Choice

The main purpose of a stock split is to:

• A)give stockholders something that doesn't cost the company anything.
• B)keep the price in a trading range so it's accessible to small investors.
• C)immediately increase shareholder wealth.
• D)send a positive signal when the firm can't afford to give stockholders cash.

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Definitions:

Dual Processing

The principle that our minds operate on two levels – conscious and unconscious – simultaneously, affecting thoughts and actions.

Moral Reasoning

The process of determining right from wrong in situations, often guided by personal, cultural, or societal ethics, values, and principles.

Role Confusion

A situation where an individual is unsure about their place in society or their personal identity, often occurring during adolescence.

Basic Trust

A term introduced by Erik Erikson referring to the first stage of psychological development where an infant develops a sense of trust or mistrust largely depending on the quality of caregiving.