Macroeconomic Factors _Quiz-1

Why might a company split its stock?

• To improve the company's credit rating.
• To make shares more affordable and increase liquidity.
• To reduce the number of shareholders.
• To increase the company's market share.

What is the purpose of issuing bonus shares?

• To reduce the number of shareholders
• To reward shareholders and improve liquidity.

• To decrease the stock price
• To increase the company's debt

Does a stock split affect the overall value of an investor's holdings?

• Yes, a stock split increases the overall value of an investor's holdings.
• A stock split decreases the number of shares an investor owns, reducing value.
• A stock split changes the market capitalization of the company, affecting value.
• No, a stock split does not affect the overall value of an investor's holdings.

What does a shareholder receive when the company makes extra money and decides to share it?

• Dividends
• Bond yields
• Stock options
• Interest payments

Why might employees feel more motivated with an ESOP?

• Employees prefer higher salaries over ownership stakes.
• Employees feel more motivated with an ESOP because they have a direct stake in the company's success.
• Employees feel less connected to the company's goals.
• Employees are motivated by job security rather than profit sharing.