alleryStart learning →Which is the main effect of a stock split?
AHigher earnings
BLower liabilities
CGreater liquidity
DFewer shareholders
Answer & Solution
Correct answer: C. Greater liquidity
With more shares at lower prices there are more buyers and sellers, so liquidity rises.
Keep practising Ind AS 33 Earnings per Share
Browse all Ind AS 33 Earnings per Share questions for CA Final, or explore more Financialreporting topics.
Related questions
Opening shares 1,00,000; on 1 October 30,000 more issued for cash. Weighted shares, March EPS from continuing operations uses which numerator?Anti-dilution provisions in venture contracts favour whom?How can a firm offset the dilution from employee options?1,000 shares trade at Rs 20 and 250 new shares are issued at Rs 12. Theoretical diluted prWhich event can dilute existing owners' holdings?A larger share count lowering profit for each share is called what?What does stock dilution reduce?