Which of the Following Is NOT a Reason Used by the Market

question 4

Multiple Choice

Which of the following is NOT a reason used by the market as justification for a firm that engages in a stock split?

• A)The company wishes to keep their stock price in a preferred trading range.
• B)The company wants to pay dividends to more shareholders.
• C)The company wished to send a positive signal to the market.
• D)The company wishes to increase liquidity by making their stock easier to buy.

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Definitions:

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Records that trace the detailed sequence of transactions, activities, or events associated with operational processes, providing a verifiable trail for review.

Operating Cash Flow

A metric reflecting the cash flow from a company's core operations.

Net Income

Net income is the total earnings of a company after all expenses and taxes have been subtracted from revenues, representing the profit during a specific period.