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INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
A major objective of estate planning is to [ minimize tax exposure | enhance current income ].
Stock Split
A stock split is a corporate action that increases the number of a company's shares by dividing each share, which can make the stock more affordable to investors.
Total Market Value
The combined market price or value of all of a company's outstanding shares, reflecting its overall market capitalization.
Post-Split Price
The new stock price following a stock split, adjusted to reflect the increase in the number of shares without altering the company's market capitalization.
Residual Dividend Policy
A strategy where dividends paid to shareholders are based on earnings left after all operational and expansion financing needs are met.
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