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stock splitts

BBrian4y ago
sir in terms of stock splits No cash is raised and therefore this is not a source of finance. It will have the effect of reducing the market value per share of all the shares in issue, and can thus make the shares more marketable. so does that mean stock splitts are making the shares of a company have more demand ?
John MoffatJohn MoffatTutor4y ago#1
It does not mean that there will be more demand for the shares, but because the market value per share is reduced it does make the shares more marketable, which (just as with a bonus issue) will make it easier to raise more equity finance in the future.
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