A Reverse Stock Split Is Sometimes Used as a Means

question 10

Multiple Choice

A reverse stock split is sometimes used as a means of:

• A) decreasing the liquidity of a stock.
• B) decreasing the market value per share of stock.
• C) increasing the number of stockholders.
• D) keeping a firm's stock eligible for trading on a stock exchange.
• E) raising cash from current stockholders.

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Definitions:

Demand Equals Supply

An economic condition where the quantity of a product or service demanded by consumers is equal to the quantity supplied by producers.

Partnering/Consultative Selling

A sales approach that focuses on building a long-term relationship with the customer, where the seller acts as an advisor or partner rather than merely a vendor.

Alliance Selling

A sales strategy where partnering organizations join forces to sell complementary products or services to enhance value to the customer.

Benefit Selling

A method of selling whereby a salesperson relates a product’s benefits to the customer’s needs using the product’s features and advantages as support.