Reverse Stock Splits Take Place in Many Cases

question 2

Multiple Choice

Reverse stock splits take place in many cases

• A)to avoid delisting by the stock exchanges and NASDAQ.
• B)to raise the price of the common stock from the individual investor price range to the institutional investor price range.
• C)because there may be simply too many shares outstanding from previous stock splits.
• D)None of these options

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Definitions:

Relationship

An emotional or social connection between two or more individuals, often based on feelings of affection and involving communication and mutual exchanges.

Variables

Elements, features, or factors that can be changed and measured in scientific research to determine their effects on the outcomes of the research.

Reliable Test

A test that consistently produces the same results over time when given in the same conditions.

Validity

The extent to which a test or instrument measures what it is supposed to measure.