The Primary Purpose of a Stock Split Is to

question 73

Multiple Choice

The primary purpose of a stock split is to

• A) indicate the firm's desire to retain funds.
• B) increase the investor's overall wealth.
• C) reduce the threat of a takeover by creating more shares.
• D) bring the stock price to a lower trading range.

---

Definitions:

Business Letter

A formal document used to communicate between companies or between a company and its clients, suppliers, or other stakeholders.

Envelope Size

The dimensions of an envelope, typically determined by its intended use or the size of the content it is meant to contain.

Correspondence

The exchange of letters or messages between individuals, often for personal or business purposes.

Signature Block

A part of a document set aside for a person to write or digitally input their name, indicating agreement, authorization, or acknowledgement.