Which of the Following Is a Reason for a Company

question 83

Multiple Choice

Which of the following is a reason for a company to announce a stock split?

• A)to defend against a hostile takeover
• B)to double the par value of the share
• C)to reduce the market price at which the stock is trading
• D)to provide the shareholders with something of value, when the company cannot afford a cash dividend

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Definitions:

Settlement

The resolution of a dispute or lawsuit before trial, typically involving the payment of money to a plaintiff to drop the case.

Judgment

The official decision or finding made by a court at the end of a legal proceeding.

Duty Counsel

A lawyer provided by the court or a legal aid organization to represent individuals who are unable to afford private counsel, usually at their first court appearance.

Criminal Courts

Courts that have jurisdiction to try and sentence cases involving crimes against the state or conduct detrimental to society.