Which statement below is generally true about a company that announced a stock split:

Webpage reference
A.
The company is doing very poorly

B.
The company only offers short term profits

C.
The company is in good health

D.
The company is not under good leadership

1 answer

C. The company is in good health

A stock split is typically seen as a positive indicator, suggesting that the company's stock price has risen to a level that may be making it less accessible to some investors. By splitting the stock, the company can enhance liquidity and make the shares more affordable, which is generally viewed as a sign of good performance and health.