Question

Decrease in price in stocks with corresponding increase in number of stock is an attempt of?
. stock split
. bonus stock
. securitization
. none of the above
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Answer 1

Decrease in price in stocks with corresponding increase in number of stock is an attempt of stock split.

• Stock split represents the total decrease in the face value of a stock and hence the resulting rise in the number of shares outstanding.  

• A stock split's primary purpose is to progressively enhance the liquidity of the preferred stock and thereby make it accessible for potential investors.

• When they discover the price of their shares is either too steep or is below the price levels of peer companies, enterprises then turn to stock split.