A Reverse Split Is When

question 27

Multiple Choice

A reverse split is when:

• A)the stock price gets too high for investors to purchase in round lots.
• B)several old shares, such as 4, are replaced by 1 new share.
• C)the stock price moves into the popular trading range.
• D)the stock becomes too liquid and highly marketable.
• E)None of the above.

---

Definitions:

Accounts Receivable Turnover

A financial metric that measures how often a company collects its average accounts receivable amount within a given period.

Selling Inventory

Selling inventory consists of the process in which businesses sell their stocked goods or merchandise to customers.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets to generate sales revenue.

Net Sales

Net Sales is the amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and discounts.