Deacon Corporation has just announced its intent to undertake a three-for-one stock split at the end of the next quarter. How will this announcement most likely affect trading activity for Deacon shares? O Investors will likely show increased interest in purchasing Deacon shares, thus leading to an increase in the current price per share. Investors will likely start dumping Deacon shares, thus leading to a decrease in the current price per share. Investors will likely be indifferent to the announcement, and Deacon's share price and trading volume will remain at their current levels. O Investors will likely begin to show a strong preference for purchasing odd lots of the firm's shares, thus leading to a decline in the price of round lots. eTextbook and Media

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter1: Introduction And Goals Of The Firm
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Deacon Corporation has just announced its intent to undertake a three-for-one stock split at the end of the next quarter. How will this announcement most likely affect trading activity for Deacon shares? O Investors will likely show increased interest in purchasing Deacon shares, thus leading to an increase in the current price per share. Investors will likely start dumping Deacon shares, thus leading to a decrease in the current price per share. Investors will likely be indifferent to the announcement, and Deacon's share price and trading volume will remain at their current levels. O Investors will likely begin to show a strong preference for purchasing odd lots of the firm's shares, thus leading to a decline in the price of round lots. eTextbook and Media

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