Stock or scrip surpluses are those waged out as extra stock shares of the distributing business or its subordinate firm. Nothing concrete will be achieved if the reserve is divided because if the total amount of shares rises, it will reduce the price of each share, devoid of altering the total value of the shares held. Give an example to explain.

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Stock split is a corporate strategy to divide each share of the company into a particular number of ... View the full answer