Which One of the Following Is the Best Justification for a Reverse

question 83

Multiple Choice

Which one of the following is the best justification for a reverse stock split?

• A) Improve the stock's respectability
• B) Avoid delisting
• C) Reduce transaction costs for shareholders
• D) Improve the stock's liquidity
• E) Increase the par value per share

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Definitions:

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A flammable liquid derived from petroleum, used mainly as fuel in internal combustion engines.

Utility Function

A representation in economics of how a consumer ranks different bundles of goods according to the level of satisfaction or utility they provide.

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Services aimed at fixing or maintaining the functional aspects of vehicles, ensuring they are safe and operational.

Gasoline

A liquid fuel made from petroleum and used primarily to power internal combustion engines.