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.

---

Definitions:

Specific Performance

An order of the court requiring that a nonbreaching party fulfill the terms of the contract.

Non-Contractual Relationships

Interactions between parties that are not governed by a formal written or spoken contract, but still may involve legal obligations.

Duty of Obedience

is the responsibility of the directors and officers of a corporation to act in accordance with the corporation's charter, bylaws, and the law in decision-making processes.

Lawful Instruction

Refers to directives or orders given that are within the bounds of the law and ought to be followed by the recipients.