A Reverse Stock Split

question 1

Multiple Choice

A reverse stock split

• A) occurs when a company wants to increase the price of its common stock because the market hasn't recognized the improvements the company has made in achieving profitability.
• B) means the company exchanges fewer new shares in place of more older shares.
• C) eliminates any previous stock dividend.
• D) is more popular in bull markets than in bear markets.

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Definitions:

Accounting

The systematic recording, reporting, and analysis of financial transactions of a business or individual.

Ethnomethodologists

Sociologists who study how people use everyday social interactions to construct a shared social reality.

Ethnomethodologists

Scholars who study how people use everyday interactions to construct a shared social reality.

Institutions

Structures or mechanisms of social order and cooperation governing the behavior of a set of individuals within a given human community.