When a Company Exchanges 100 Shares of Stock Worth $10

question 29

Multiple Choice

When a company exchanges 100 shares of stock worth $10 each for 50 shares worth $20 each, they are using

• A)tracking stock.
• B)holding stock.
• C)an LBO.
• D)reverse stock split.
• E)split stock.

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Definitions:

Chapter 12

A section of the U.S. Bankruptcy Code providing for debt relief to family farmers and fishermen.

Family Farmer

A designation used in bankruptcy law for a farmer or fisherman with regular annual income that allows them to adjust debts under Chapter 12.

Debt Cap

A limit set on the amount of debt that an organization or government may incur.

Congress

The national legislative body of the United States, consisting of the Senate and the House of Representatives.