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.

---

Definitions:

Easy Babies

Babies who have a positive disposition; their body functions operate regularly, and they are adaptable.

Thomas and Chess

Psychologists known for their research on temperament, categorizing children's behavior across nine dimensions to describe their personality.

Autonomy

Autonomy refers to the capacity to make informed, uncoerced decisions independently, often considered an essential aspect of personal development and ethical philosophy.

Continuity Theory

A theory suggesting that individuals tend to maintain consistent patterns of behavior, identity, and personality over their lifetime.