4. Which of the following is the most valid reason to split a stock th

QUESTION

4. Which of the following is the most valid reason to split a stock that has a market price of $110 per share?Which of the following is correct?Conserve cash.Reduce the market price to a more popular trading range.Obtain additional capital.Increase investors net worth.
Conserve cash-splitting a stock has nothing to do with conserving cash Reduce the market price to a more popular trading range. Obtain additional capital-you cant obtain additional capital by splitting stocks/you can nly obtain additional capital by issuing bonds/ issue¦

re stocks, etc Increase investors net worth-it cannot increase a investors net worth because (example $110 per share, you split it to 10 shares it would be $11 per share x10 =$110.

ANSWER:

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