Reverse Stock Splits Reduce the Number of Shares Outstanding,and Thus

question 21

Multiple Choice

Reverse stock splits reduce the number of shares outstanding,and thus have which of the following effects on stock price?

• A)A reverse split reduces the number of shares outstanding, and thus reduces share price.
• B)A reverse split reduces the number of shares outstanding, and increases share price.
• C)A reverse split has no effect on the number shares outstanding and thus no effect on share price.
• D)A reverse split reduces the number of shares outstanding in proportion to the debt outstanding and thus increases share price.

---

Definitions:

Authoritative Parenting

A parenting style characterized by high responsiveness and high demands, focusing on setting clear standards and being assertive without being intrusive.

Favorite Type of Play

An individual's preferred method of engaging in play, reflecting personal enjoyment and entertainment.

Prosocial Behavior

Voluntary actions intended to benefit or help others, such as sharing, comforting, or showing kindness, often considered a significant aspect of social development.

Developmental Progression

Refers to the sequence of physical, emotional, and cognitive developmental stages that individuals go through from infancy to adulthood.