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To Decrease the Number of Shares Owned by Each Investor

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To decrease the number of shares owned by each investor so that small investors can be bought out is a valid reason for a reverse stock split.


Definitions:

Population Parameter

A numerical characteristic of a population, such as mean or standard deviation, that is usually unknown.

Proportion

In statistics, a proportion refers to the fraction of the total that exhibits a certain trait or characteristic.

Season Ticket Holders

Individuals or entities that possess tickets granting them access to a series of events, typically sports games or concerts, for a particular season.

Margin of Error

An expression of the amount of random sampling error in survey results, indicating how much the survey results might differ from the true population values.

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