Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. "options markets" please respond to the following:

"Options Markets" Please respond to the following: Justify why an investor may prefer stock splits versus...

90.2K

Verified Solution

Question

Finance

"Options Markets" Please respond to the following: Justify whyan investor may prefer stock splits versus stock dividends as aneffective way to increase their portfolio. Provide an example foryour justification. Analyze the terms “in the money option” and“out of the money option.” Provide two examples of theirapplications.

Answer & Explanation Solved by verified expert
4.5 Ratings (843 Votes)
Stock splits can make the shares more affordable to the market participants that also provides greater marketability liquidity to the participants resulting in price discovery The concept of stock split is that it issues new shares to the existing shareholders As the number of shares goes up the portfolio of the shareholder also increases the market capitalization of the company would remain the same also the price of the share comes down Hence stock splits are good when compared to stock dividend But in case of stock dividends it is issued by the company when the company    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

"Options Markets" Please respond to the following: Justify whyan investor may prefer stock splits versus stock dividends as aneffective way to increase their portfolio. Provide an example foryour justification. Analyze the terms “in the money option” and“out of the money option.” Provide two examples of theirapplications.

Other questions asked by students

Q

Please use excel and demonstrate the formulae used. A new project will cost $32,356 initially and...

Finance
Q

A bond with 15 years to maturity is paying 6% coupons semi-annually, and the last coupon...

Finance
Q

Hearing The receptor for hearing is the _________ which is located in the _________. The receptor has...

Medical Sciences
Q

A slab of material of dielectric cons k has the same area A as the...

Physics
Q

If p and q are distance of object and real image from the principal focus...

Physics
Q

1 iven f x and g x what is What is the domain of T...

Basic Math
Q

35 1 point For this density curve the mean is 0 5 0 4 0...

Statistics
Q

aph the solution set of the inequality where x 7 x 2

Algebra
Q

ne complex number 9 3i 5 represents which radical expression below 0 A 9 45...

Algebra
Q

Required information The Foundational 15 [LO13-1, LO13-2, LO13-3, LO13-5,...

Accounting
Q

Record all journal entries for the first year (3/1/x1 - 12/31/x1) on the books of...

Accounting
Q

paymertat theesd of cichys (0) (e) (d)

Accounting