Which of the Following Statements Is NOT True

question 81

Multiple Choice

Which of the following statements is NOT true?

• A)A straight stock split is often taken to engineer a stock's price down into the preferred trading range.
• B)A reverse split is often taken to engineer a stock's price up into the preferred trading range.
• C)After a straight stock split,the equity value of the company increases because there are now more shares to trade.
• D)Researchers have found that after a straight stock split,companies generally tend to move into the preferred trading range of $20 to $40 a share.

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Definitions:

Context Factor

A variable or condition that impacts the environment or outcomes within a specific situation.

Team Goals

Objectives or outcomes that a group collectively aims to achieve, usually within a set timeframe, as a part of collaborative efforts.

Bolster Employee Morale

The act of strengthening the confidence, enthusiasm, and discipline of employees in a workplace setting.

CitiMortgage

A financial services division of Citigroup, specializing in mortgage lending and servicing for homeowners across the United States.