A Reverse Split Is When

question 57

Multiple Choice

A reverse split is when:

• A)the share price gets too high for investors to purchase in round lots.
• B)the equity becomes too liquid and highly marketable.
• C)the share price moves into the popular trading range.
• D)several old shares, such as 4, are replaced by 1 new share.
• E)None of the above.

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Definitions:

Cartel

A group of independent companies that collaborate to control prices and production in order to monopolize a market.

Oligopoly

A market structure dominated by a small number of large firms, offering similar or identical products, with significant barriers to entry for new competitors.

Joint Profits

The total earnings generated by two or more firms collaborating in a venture or partnership.

Marginal Cost

The uplift in total expenditure caused by the production of one more unit of a product or service.