A One-For-Two Reverse Split Increases a Stock's Price but Not

question 83

True/False

A one-for-two reverse split increases a stock's price but not its total value.

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Definitions:

Bond

A fixed income instrument representing a loan made by an investor to a borrower, typically corporate or governmental.

Purchase Cost

The total expense incurred to acquire an asset, including the purchase price and associated costs.

360-Day Year

A financial convention or simplification to treat all months as 30 days in duration for the ease of interest calculations and financial analysis.

Commission

A fee or percentage of a sale paid to an employee or agent for facilitating or completing a sale.