The Primary Reason for a Stock Split Is to

question 115

Multiple Choice

The primary reason for a stock split is to

• A)distribute cash to the investor.
• B)decrease the market value of the stock.
• C)decrease the number of shares outstanding.
• D)increase the contributed capital of the corporation.

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Definitions:

Identify

To establish or indicate who or what (someone or something) is.

Folk Theories

Informal, intuitive, and often culturally specific beliefs or explanations about the world and how it works, not necessarily based on scientific evidence.

Ambiguous Sentences

Phrases or expressions that can be interpreted in more than one way due to vague or multiple meanings of words or structure.

Category

A class or division of objects or concepts regarded as having particular shared characteristics.