"Options Markets" Please respond to the following: Justify why an investor may prefer stock splits versus...

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Finance

"Options Markets" Please respond to the following: Justify whyan investor may prefer stock splits versus stock dividends as aneffective way to increase their portfolio. Provide an example foryour justification. Analyze the terms “in the money option” and“out of the money option.” Provide two examples of theirapplications.

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Stock splits can make the shares more affordable to the market participants that also provides greater marketability liquidity to the participants resulting in price discovery The concept of stock split is that it issues new shares to the existing shareholders As the number of shares goes up the portfolio of the shareholder also increases the market capitalization of the company would remain the same also the price of the share comes down Hence stock splits are good when compared to stock dividend But in case of stock dividends it is issued by the company when the company See Answer

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"Options Markets" Please respond to the following: Justify whyan investor may prefer stock splits versus stock dividends as aneffective way to increase their portfolio. Provide an example foryour justification. Analyze the terms “in the money option” and“out of the money option.” Provide two examples of theirapplications.

"Options Markets" Please respond to the following: Justify why an investor may prefer stock splits versus...

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Finance

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