In a Reverse Stock Split

question 62

Multiple Choice

In a reverse stock split,

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

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Definitions:

Perceptual Constancy

The brain's ability to perceive objects as unchanging (having consistent shape, size, and color) despite changes in perspective, distance, and lighting.

Size Constancy

The perceptual stability of the size of objects in the world, perceiving them as having a constant size, despite changes in the distance from which they are viewed.

Perceptual Processes

The means by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Cephalocaudal Development

A pattern of growth where development proceeds from the head downwards through the body.