The Issuance of One New Share of Stock to Replace

question 350

Multiple Choice

The issuance of one new share of stock to replace three outstanding shares is called a:

• A) Stock dividend.
• B) Stock split.
• C) Reverse stock dividend.
• D) Reverse stock split.
• E) Stock repurchase.

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Definitions:

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the party to be charged, to be enforceable.

Oral Agreement

A verbal commitment between parties that is not recorded in written form but may still be legally binding.

Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure on default.

Original

In legal and official documents, "original" refers to the first form or version of a document that has not been copied, altered, or replicated.