why do a splita 4 x 1 split is an operation by


Why do a Split?

A 4 x 1 Split is an operation by which a shareholder now owns 4 shares for every share he/she had before. Logically, the stock market value of each of these new shares is ¼ of their value before the split. Why is it useful? One of the possible answers is that it decreases the price of a share in order to enhance liquidity.

 

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Financial Management: why do a splita 4 x 1 split is an operation by
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