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Why do some investors consider stock splits as a buying indicator?
  • a)
    Stock splits increase the company's earnings.
  • b)
    Stock splits indicate that the company is financially unstable.
  • c)
    Stock splits make shares more affordable.
  • d)
    Stock splits provide tax benefits to investors.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Why do some investors consider stock splits as a buying indicator?a)St...
Some investors consider stock splits as a buying indicator because stock splits make shares more affordable. When a company's stock price is split, the price per share decreases, making it more accessible to a broader range of investors. This increased affordability can attract new investors and drive up demand for the stock.
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