Which of the Following Is the Most Probable Way in Which

question 31

Multiple Choice

Which of the following is the most probable way in which a shareholder will benefit from a stock split?

• A) The immediately lower share price will attract enough increased interest in the stock to cause the market price to increase on a more consistent basis.
• B) The immediately higher number of shares that an investor owns immediately increases the investor's wealth.
• C) The shareholder can use the immediately increased wealth to borrow more money to buy even more shares at the immediately lower market price.
• D) A shareholder can lose money after a stock split if the market believes that the split was an artificial way of attracting attention to a company that is not well managed.

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Definitions:

Test Anxiety

A psychological condition in which individuals experience extreme distress and worry in testing situations, often affecting performance.

Registering for a Course

Registering for a course is the administrative process of enrolling in and securing a seat in a specific class or program of study within an educational institution.

Progressive Relaxation

A method of reducing stress and anxiety by tensing and then relaxing each muscle group in the body sequentially.

Systematic Desensitization

A therapeutic method used to reduce phobia and anxiety by gradually exposing the patient to the anxiety source.