Surf City Has Decided on a 1-For-5 Reverse Stock Split

question 324

Multiple Choice

Surf City has decided on a 1-for-5 reverse stock split. If the firm currently has 20,000,000 shares outstanding, how many shares will be outstanding after the stock split?

• A) 10,000,000 shares
• B) 20,000,000 shares
• C) 5,000,000 shares
• D) 4,000,000 shares
• E) 2,000,000 shares

---

Definitions:

Prefix

A group of letters placed at the beginning of a word to alter its meaning or create a new word, such as “un-” in “unhappy”.

-rrhea

A suffix used in medical terminology indicating a flow or discharge of a particular substance.

-pathy

A suffix used in medical terminology to denote a disorder or disease of a specified type or location.

-stomy

A suffix used in medicine to denote the creation of an opening or mouth, often surgically, into a body part or organ.