A Reverse Stock Split

question 39

Multiple Choice

A reverse stock split

• A) occurs when a company wants to increase the price of its common shares because the market hasn't recognized the improvements the company has made in achieving profitability.
• B) exchanges fewer new shares of common for old shares of common stock.
• C) will not change earnings per share.
• D) is more popular in bull markets than in bear markets.

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Definitions:

Mediators

Neutral third parties who facilitate negotiations and conflict resolution between disputing parties aiming for agreement.

Competencies

Skills and abilities that enable an individual to perform tasks successfully.

Diagnose Conflict

The process of identifying the source, nature, and scope of a disagreement or dispute.

Distributive Negotiations

A negotiation method that involves dividing a fixed amount of resources or assets, where any gain by one party is made at the expense of another.