Which of the Following Statements Is CORRECT

question 8

Multiple Choice

Which of the following statements is CORRECT?

• A) back before the sec was created in the 1930s, companies would declare reverse splits in order to boost their stock prices. however, this was determined to be a deceptive practice, and it is illegal today.
• B) stock splits create more administrative problems for investors than stock dividends, especially determining the tax basis of their shares when they decide to sell them, so today stock dividends are used far more often than stock splits.
• C) when a company declares a stock split, the price of the stock typically declinesσby about 50% after a 2-for-1 splitσand this necessarily reduces the total market value of the equity.
• D) if a firm's stock price is quite high relative to most stocksσsay $500 per shareσthen it can declare a stock split of say 10-for-1 so as to bring the price down to something close to $50. moreover, if the price is relatively lowσsay $2 per shareσthen it can declare a "reverse split" of say 1-for-25 so as to bring the price up to somewhere around $50 per share.
• E) when firms are deciding on the size of stock splitsσsay whether to declare a 2-for-1 split or a 3-for-1 split, it is best to declare the smaller one, in this case the 2-for-1 split, because then the after-split price will be higher than if the 3-for-1 split had been used.

Solve complex circuit problems by reducing them to simpler circuits.

Calculate the current through specific components in a circuit.

Understand the relationship between voltage, current, and resistance in circuits.

Understand the principles of current flow and the role of junctions in electrical circuits.

---

Definitions:

False Advertising Claims

Legal accusations that involve the dissemination of misleading, deceptive, or false statements in advertising to promote the sale of goods or services.

Passing-Off Claims

Legal actions taken against individuals or companies that misrepresent their goods or services as those of another, causing confusion or deception.

Intentional Interference

Deliberate actions by a person to disrupt or prevent contractual relations or economic expectancies between parties.

Void Bargains

Agreements that have no legal force or effect from the outset due to a fundamental defect or illegality.