Reverse Stock Splits Are Used by Companies Whose Low Share

question 75

Multiple Choice

Reverse stock splits are used by companies whose low share price

• A) puts the company at risk of being listed on a stock exchange as a result of their share price being barely above the minimum threshold for listing on the exchange.
• B) makes them eligible investments for certain institutional investors.
• C) allows them to list on a public exchange.
• D) prevents them from listing on a public exchange.

---

Definitions:

Acceptable Name

A common or trivial name for a chemical compound that is widely used and recognized, besides its systematic IUPAC name.

Chair Conformation

A specific three-dimensional geometric shape of cyclohexane that minimizes strain, resembling a chair, and is the most stable and common conformation due to its staggered arrangement of bonds.

Alternative Hypothesis

The hypothesis in a statistical test that proposes a difference or effect, contrasted with the null hypothesis.

Friedman Test

A statistical test that does not rely on parameter distributions to identify variations in treatments across several trials.