The Primary Purpose of a Stock Split Is to

question 68

Multiple Choice

The primary purpose of a stock split is to

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

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Definitions:

Downsizing

The process of reducing the size of a company by eliminating positions or staff, often in response to economic challenges or organizational restructuring needs.

Principled Heuristics

Decision-making shortcuts based on ethical principles or standards, enabling quick judgments that align with established moral values.

Sociocultural Norms

The shared customs, behaviors, and beliefs that dictate the expected way of living within a specific society or cultural group.

Moral Principles

Fundamental beliefs about what is right and wrong, which guide individuals' behaviors and decisions.