When a corporation declares a stock split, it usually does so because
A) the firm's retained earnings are excessive.
B) there are too many shares of stock outstanding.
C) investors sometimes require nontaxable returns.
D) it wants to make its stock more affordable to average investors.

Question

Quizplus · Accepted Answer

Stock splits are often executed to make the stock more affordable to average investors, thereby increasing liquidity and accessibility of the stock to a broader base of investors.

When a Corporation Declares a Stock Split, It Usually Does