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Stock Splits Increase the Number of the Shares You Own,but

question 36

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Stock splits increase the number of the shares you own,but decrease the value of your total holdings with the company.


Definitions:

Disposable Income

Net financial assets for households dedicated to spending and saving, subsequent to income tax reductions.

Credit Availability

The ease with which individuals and businesses can obtain loans and other forms of credit from financial institutions.

Liquid Assets

Assets that can be quickly converted into cash with little impact on their value.

Consumption Rate

The proportion of income or resources that is spent on consumption rather than saving.

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