A One-For-Four Reverse Stock Split Will

question 65

Multiple Choice

A one-for-four reverse stock split will:

• A)increase the par value by 25 percent.
• B)increase the number of shares outstanding by 400 percent.
• C)increase the market value but not affect the par value per share.
• D)increase a $1 par value to $4.
• E)increase a $1 par value to $5.

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Definitions:

Economic Benefits

The advantages gained from financial activities, including profits, savings, or value creation, contributing to economic growth.

Erosion Prevention

Methods and practices aimed at stopping soil erosion to protect land and water resources, often involving vegetation or structural solutions.

Strong Property Rights

The legal protection and enforcement of individuals' rights to own, use, and transfer property, considered essential for economic development and innovation.

Low Birthrates

The situation in which the number of live births per 1,000 people in a population is lower than usual, indicating a decline in fertility.