The Primary Purpose of a Stock Split Is to Reduce

question 119

True/False

The primary purpose of a stock split is to reduce the number of shares outstanding in order to encourage more investors to enter the market for the company's shares.

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Definitions:

BATNA

Best Alternative to a Negotiated Agreement; the most advantageous alternative course of action a party can take if negotiations fail and an agreement cannot be reached.

Bargaining Environment

The context or setting in which negotiation between parties (e.g., employers and employees) takes place, including all influencing factors.

Surface Bargaining

A form of labor negotiation where parties go through the motions of bargaining without any real intention to reach agreement, often to fulfill legal obligations.

Direct Dealing

The practice of employers interacting directly with employees about employment terms without the intervention of a labor union.