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Isidro Paucek

Dec 27, 2024

Stock splits are issued primarily to: Multiple Choice Increase the number of outstanding shares. Increase the number of authorized

Why are stock splits typically issued?

Select the best answer from the options below:
- To increase the number of outstanding shares.
- To increase the number of authorized shares.
- To increase legal capital.
- To induce a decline in market value per share.

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3 Answers

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Anonymous

Jan 13, 2025

Induce a decline in market value per share.Explanation:A balance sheet can be defined as a financial statement of an organization which is typically used to record financial informations liabilities, capital, shareholder's equity, assets, debts at a specific period of time.With regards to a balance sheet, a stock split will not affect the total value of any of the equity accounts. A stock split can be defined as a process in which a company divides its existing shares of the stock it owns into multiple new shares to its shareholders in proportion to the amount of their holdings. Thus, a stock split will not affect the total value of any of the equity accounts with respect to a balance sheet.Stock splits are issued primarily to induce a decline in market value per share because it raises the amount of shares outstanding.
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