Ina Reverse Stock Split, ________________

question 354

Multiple Choice

Ina reverse stock split, ________________.

• A) The number of shares outstanding increases, and owners' equity decreases.
• B) The firm buys back existing shares of stock on the open market.
• C) The firm sells new shares of stock on the open market.
• D) The number of shares outstanding decreases, but owners' equity is unchanged.
• E) Shareholders make a cash payment to the firm, just the opposite of a cash dividend.

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Definitions:

Modern Test

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Intelligence

The ability to learn, understand, and make judgments or have opinions that are based on reason.

Indentured Servitude

A labor system where people paid for their passage to the New World by working for an employer for a certain number of years.

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Refers to the companies and activities involved in the cultivation, manufacture, and sale of tobacco and tobacco-related products.