Suppose a Firm Wishes to Have Its Stock Listed on an Exchange

question 168

Multiple Choice

Suppose a firm wishes to have its stock listed on an exchange but its share price is not high enough to meet the exchange's specified minimum price level. How might the firm remedy this situation and reduce the number of shares outstanding at the same time?

• A) Pay a liquidating dividend.
• B) Pay a stock dividend.
• C) Pay a regular cash dividend.
• D) Execute a reverse stock split.
• E) Execute a stock split.

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Primary Data

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