The purpose of a stock split is to
A. affect the firm’s capital structure.
B. decrease the dividend.
C. enhance the trading activity of the stock by lowering the market price.
D. increase the market price of the stock.
Answer:C
The purpose of a stock split is to
A. affect the firm’s capital structure. B. decrease the dividend. C. enhance the trading activity of the stock by lowering the market price. D. increase the market price of the stock.