Stock FAQs

which of the following is a reason for a company to announce a stock split?

by Prof. Jana Spencer IV Published 3 years ago Updated 2 years ago
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Which of the following is a reason for a company to announce a stock​ split? to decrease the market price at which the stock is trading.

What is a stock split?

Key Takeaways. A stock split is a corporate action in which a company increases the number of its outstanding shares by issuing more shares to current shareholders. The primary motive of a stock split is to make shares seem more affordable to small investors. Although the number of outstanding shares increases and the price per share decreases, ...

What is reverse stock split?

Reverse stock splits are when a company divides, instead of multiplies, the number of shares that stockholders own ( thereby raising the market price of each share). 1:16.

Who is Brian Beers?

Understanding Stock Splits. Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.

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