stock dividend,stock split & reverse stock split

CFA Level I
#1

does stock dividend,stock split & reverse stock split effect liquidity of the company?

#2

Don’t think so. But the probably increasy liquidity of the company’s stock.

#3

I does not affect the liquidity of the company but does affect the liquidity of the stock. Stock splits increase the liquidity of a stock; there are more buyers and sellers for 10 shares at $10 than 1 share at $100. Some companies have the opposite strategy: by refusing to split the stock and keeping the price high, they reduce trading volume and volatility.

#4

but stock split increases brokerage fee & hence reduces liquidity

#5

@komal - how does it increase brokerage ? I mean …does that affect a lot ?