In a Reverse Stock Split

question 69

Multiple Choice

In a reverse stock split:

• A) the number of shares outstanding increases and owners' equity decreases.
• B) the firm buys back existing shares of stock on the open market.
• C) the firm sells new shares of stock on the open market.
• D) the number of shares outstanding decreases but owners' equity is unchanged.
• E) shareholders make a cash payment to the firm.

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Definitions:

Self-Concept

This refers to the collection of beliefs, attitudes, and perceptions that an individual holds about themselves, shaping their identity and self-worth.

Self-Esteem

The subjective evaluation of one's own worth or abilities; how much value someone places on themselves.

I-Self

Part of the self-concept that involves consciousness and self-awareness, distinguishing oneself from the external environment.

Objective Self-Awareness

The ability to observe oneself from an external viewpoint, leading to a greater understanding of one’s actions and their impact.