Nathan noticed that a company that has great potential just declared a ________ because its stock price was getting too high for the small investor to buy the stock- The company will substitute more shares for the existing shares of stock without increasing the market value of the firm.

What is a a stock?

A stock represents an ownership stake in a company as a common shareholder.

Common stocks allow shareholders to vote on company issues, with most companies granting one vote per share.

Some companies also offer stockholders dividend payouts, giving investors a stream of income on top of the market value of the stock.