Is a positive stock split good for the current share holders?
What will be an ideal response?
Answer: Yes, for the most part a positive stock split is a bullish signal to the market about the success and growth of the profit potential for the firm. When a firm's profits are rising, the demand for their stock increases causing the market price of the stock to increase. When the share price gets to high then the company can effectively lower the share price by doing a stock split. Since a stock split increases the number of shares shareholders own, then they will eventually end up with more dividends and capital gains if the company continues to prosper. The market price of the stock effects the liquidity of the stock also. It is much easier to sell stock at $40 per share than $120 per share since more people can afford the lower price.
You might also like to view...
Generally, most states apply statutes of state _______________________ to LLCs operating in their state.
Fill in the blank(s) with the appropriate word(s).
Lila Miller who works for a large software firm is four months pregnant and is due for a promotion
However, her employer offers the promotion to Harry Oswald, a less-experienced candidate, as Lila would go on maternity leave soon and would be unable to perform her duties. Which of the following is true of this scenario? A) Lila's employer is not liable for disparate-treatment discrimination. B) Lila's employer is liable for disparate-impact discrimination. C) The employer was justified in denying Lila the promotion. D) Lila's employer may have violated Title VII of the Civil Rights Act of 1964.