Shareholder benefit from stock split

Reference no: EM1355645

Which of the following is the most probable way in which a shareholder will benefit from a stock split?
a. The immediately lower share price will attract enough increased interest in the stock to cause the market price to increase on a more consistent basis.
b. The immediately higher number of shares that an investor owns immediately increases the investor's wealth.
c. The shareholder can use the immediately increased wealth to borrow more money to buy even more shares at the immediately lower market price.
d. A shareholder can lose money after a stock split if the market believes that the split was an artificial way of attracting attention to a company that is not well managed.

Reference no: EM1355645

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