A Reverse Stock Split Is Sometimes Used as a Means

question 225

Multiple Choice

A reverse stock split is sometimes used as a means of:

• A) Decreasing the liquidity of a stock.
• B) Decreasing the market value per share of stock.
• C) Increasing the number of stockholders.
• D) Keeping a firm's stock eligible for trading on a stock exchange.
• E) Raising cash from current stockholders.

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Definitions:

Credit Obligations

The responsibilities to repay debt incurred through borrowing or credit agreements.

Partially Assembled

Refers to products or goods that have been partially put together but require additional assembly or work to be considered complete.

Raw Logs

Unprocessed timber that has been cut but not yet transformed into lumber or other finished products.

Least Liquid

Assets that are hardest to convert into cash without significant loss in value.