### Analysis of the Statement

1. **Understanding Share Splits**: A company may decide to split its shares when the price per share becomes too high for average investors, limiting market accessibility. The intention behind a split is often to reduce the share price so that it becomes more affordable for a larger number of investors.

2. **Implications of High Share Prices**: A high share price can deter small investors and may lead to lower liquidity in trading. By splitting shares, the company aims to increase the number of shares available, thereby potentially encouraging more buying and selling.

3. **Conclusion**: The statement that "one possible reason why a company splits its shares is that its share price is too high" is indeed a widely accepted rationale in corporate finance and investing strategies.

### Final Answer
**True**. A company can split its shares if its share price is too high to make them more accessible to investors.

Question

### Analysis of the Statement

1. **Understanding Share Splits**: A company may decide to split its shares when the price per share becomes too high for average investors, limiting market accessibility. The intention behind a split is often to reduce the share price so that it becomes more affordable for a larger number of investors.

2. **Implications of High Share Prices**: A high share price can deter small investors and may lead to lower liquidity in trading. By splitting shares, the company aims to increase the number of shares available, thereby potentially encouraging more buying and selling.

3. **Conclusion**: The statement that "one possible reason why a company splits its shares is that its share price is too high" is indeed a widely accepted rationale in corporate finance and investing strategies.

### Final Answer
**True**. A company can split its shares if its share price is too high to make them more accessible to investors.

Knowee AI · Accepted Answer

### Analysis of the Statement

1. **Understanding Share Splits**: A company may decide to split its shares when the price per share becomes too high for average investors, limiting market accessibility. The intention behind a split is often to reduce the share price so that it becomes more affordable for a larger number of investors.

2. **Implications of High Share Prices**: A high share price can deter small investors and may lead to lower liquidity in trading. By splitting shares, the company aims to increase the number of shares available, thereby potentially encouraging more buying and selling.

3. **Conclusion**: The statement that "one possible reason why a company splits its shares is that its share price is too high" is indeed a widely accepted rationale in corporate finance and investing strategies.

### Final Answer
**True**. A company can split its shares if its share price is too high to make them more accessible to investors.

1. Question 2 One possible reason why a company splits its shares is that its share price is too high. Choose one of the following answers. True False

Question

Question 2

Solution

Analysis of the Statement

Final Answer

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