The Typical Reason for a Stock Split Is to ________

question 64

Multiple Choice

The typical reason for a stock split is to ________.

• A) allow for growth in the company assets
• B) allow liabilities to grow
• C) increase earnings per share
• D) keep the share price in a range

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuing entity, which may not reflect market value.

Market Value

The existing rate at which an asset or service is offered for buying or selling in an unrestricted market.

Dividend Income

Income received from owning shares in a company, typically paid out from the company's profits.

Dividend Per Share

The amount of dividend a company pays out to each shareholder for each share they own.