When a Company Exchanges 200 Shares of Stock Worth $20

question 56

Multiple Choice

When a company exchanges 200 shares of stock worth $20 each for 100 shares worth $40 each,they are using

• A) tracking stock.
• B) holding stock.
• C) a leveraged buyout.
• D) reverse stock split.
• E) split stock.

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Definitions:

Authority

Claiming and exercising power as justified by law or custom of tradition.

Legitimacy

The general belief that a rule, institution, or leader has the right to govern or command, often based on law, custom, or consent.

Chiefdoms

Socio-political organizations in which authority is centralized in a single leader who wields economic, political, and ceremonial control, often hereditary.

Extremely Unstable

A situation or condition that is highly unpredictable and may change abruptly.