A Firm Has 2 Million Shares Outstanding, Selling for $3

question 2

Multiple Choice

A firm has 2 million shares outstanding, selling for $3 a share. If the firm does a 1-for-4 reverse split, how many shares will be outstanding and what will the market price per share
Be?

• A)0.5 million shares at $0.75 a share
• B)8 million shares at $0.75 a share
• C)0.5 million shares at $12 a share
• D)8 million shares at $12 a share

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Definitions:

Adler

Refers to Alfred Adler, an Austrian medical doctor and psychotherapist, known for his contributions to psychology with the theory of individual psychology.

Behaviorists

Psychologists who study and theorize about human and animal behavior through observable actions, often dismissing internal processes.

Fixated

An obsessive interest or attachment to someone or something.

Aggression

Behavior intended to harm or intimidate others.