Which of the following is the most valid reason to split a stock that has a market price of $110 per share?
A) conserve cash
B) reduce the market price to a more popular trading range
C) obtain additional capital
D) increase investor's net worth

Question

Quizplus · Accepted Answer

Splitting a stock is typically done to reduce the market price to a more popular trading range. This can make the stock more accessible and appealing to a wider range of investors, which could potentially increase demand and the stock's overall value. The other reasons listed (conserving cash, obtaining additional capital, increasing investor's net worth) are not typically valid reasons for a stock split.

Which of the Following Is the Most Valid Reason to Split