Which of the Following Is the Most Probable Way in Which

question 67

Multiple Choice

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

• A)The immediately lower share price will attract enough increased interest in the share 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 share split if the market believes that the split was an artificial way of attracting attention to a company that is not well managed.

---

Definitions:

Chocolate Bar

A confectionery product consisting primarily of chocolate, which may also contain other ingredients like nuts, fruits, or caramel.

Drive

An internal state that motivates individuals towards certain actions or behaviors to satisfy needs or achieve goals.

Need

A requirement essential for an organism's survival or well-being, as well as a strong desire for something.

Want

A desire for something that is not necessarily needed but is desired for personal satisfaction or fulfillment.