Reverse Stock Splits Take Place in Many Cases

question 61

Multiple Choice

Reverse stock splits take place in many cases

• A) to avoid delisting by stock exchanges.
• B) to raise the price of the common shares from the individual investor price range to the institutional price range.
• C) because there were simply too many shares outstanding from previous stock splits.
• D) None of these

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Definitions:

Donut

A fried dough confection or dessert food, usually ring-shaped or without a hole and filled with various sweet fillings or toppings.

Total Utility

The total satisfaction or benefit received from consuming a particular quantity of a good or service.

Donuts

A sweet, fried or baked pastry, often circular with a hole in the middle, available in various flavors and toppings.

Day

A day is a unit of time equivalent to 24 hours or the period it takes for the Earth to complete one full rotation on its axis.