A Reverse Stock Split

question 24

Multiple Choice

A reverse stock split:

• A) occurs when a company wants to increase the price of its common shares because the market hasn't recognized the improvements the company has made in achieving profitability.
• B) exchanges fewer new shares of common stock for old shares of common stock.
• C) will not change earnings per share.
• D) is more popular in bull markets than in bear markets.

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Definitions:

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The process of expelling feces from the body which occurs regularly and without difficulty.

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