We discussed stock splits in class: According to Microsoft's records it has engaged in "stock splits" 9 times; the first was in 1987. What does it mean when a company splits it stocks... why do they do it? what is the logic behind this strategy? Which of the following statement/s about stock splits are true? 1) When a company such as Microsoft splits its shares, the value of the stock in one's portfolio before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. 2) Often, a lower priced stock on a per-share basis can attract a wider range of buyers. 3) This increased demand for the now lower price stock increases demand; thus causing the share price to appreciate, thus, the owner of the stock now has a stock that is increasing in price. 4) All of the above are true 5) Only 1 and 3 are true