The Primary Purpose of a Stock Split Is to ________

question 52

Multiple Choice

The primary purpose of a stock split is to ________.

• A) issue additional shares
• B) increase the dividend
• C) reduce the price of a stock
• D) reduce trading activity

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Definitions:

Encoding

The process of converting information into a form that can be stored in memory, part of how information is processed and retained.

Information-Processing Approach

A perspective in cognitive psychology that examines how humans interpret, store, and retrieve knowledge, paralleling human thought processes to computer operations.

Processing Limitations

Refers to the bounds on the ability of individuals to process information, due to various cognitive or neural constraints.

Self-Motivation

The internal drive or initiative that leads an individual to act or pursue goals without external influence or reward.