Probably the Best Argument for a Reverse Stock Split Is

question 32

Multiple Choice

Probably the best argument for a reverse stock split is to:

• A)decrease the liquidity of a stock.
• B)decrease the market value per share.
• C)increase the number of stockholders.
• D)maintain a minimum share price as set by a stock exchange.
• E)raise additional capital from current stockholders.

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Definitions:

Confirmation Bias

Confirmation bias is the tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses, often leading to statistical errors in decision-making.

Mental Accounting

A concept in behavioral economics that refers to the different values people place on money, based on subjective criteria, affecting economic decision-making.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses, often leading to statistical errors.