Which of the Following Is an Aim of a Stock

question 91

Multiple Choice

Which of the following is an aim of a stock split?

• A) To increase the number of shares on issue and so affect the capital structure
• B) To reduce the dividend payments
• C) To increase the share price
• D) To try to improve the liquidity of shares

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Definitions:

Enhancing Quality

The process of implementing measures and practices that improve the quality of products, services, or processes.

Materiality

An accounting principle that means the significance of financial information to decision-making; insignificant details are disregarded.

Comparability

A characteristic of accounting information that allows users to analyze two or more periods of financial data or companies to identify trends and differences.

Timeliness

The degree to which information, actions, or events occur at a suitable or opportune time, particularly in contexts requiring promptness.