Which of the following is TRUE about a stock split?

A.
Stock splits impact the overall value of a company---Las divisiones de acciones afectan el valor general de una empresa

B.
Stock splits decrease the number of shares you own---Las divisiones de acciones reducen la cantidad de acciones que posee

C.
Stock splits indicate that a company is doing poorly---Las divisiones de acciones indican que a una empresa le está yendo mal

D.
Stock splits make a stock more accessible to a greater number of investors---Las divisiones de acciones hacen que una acción sea más accesible para un mayor número de inversores

1 answer

D. Stock splits make a stock more accessible to a greater number of investors---Las divisiones de acciones hacen que una acción sea más accesible para un mayor número de inversores.

This statement is true because when a company performs a stock split, the price per share decreases while the number of shares increases, making the stock more affordable for investors. The overall value of the company remains unchanged, and stock splits do not indicate any financial distress.