Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Warren Buffet opposes stock splits to lower the share price because he believes O lower share price indicates poor growth prospects. lower stock price encourages
Warren Buffet opposes stock splits to lower the share price because he believes O lower share price indicates poor growth prospects. lower stock price encourages short term investing, whereas he is looking for long-term investors. O stock splits encourage long-term investing, which is detrimental to his firm's investment policy. lower share price will encourage other companies to try to take over the company from existing shareholders
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started