Which Two of the Following Are the Best Justifications for a Reverse

question 2

Multiple Choice

Which two of the following are the best justifications for a reverse stock split?
I.combine a reverse stock split with a stock repurchase to enable a firm to go dark
II.increase the respectability of the stock
III.avoid delisting
IV.reduce transaction costs for shareholders

• A)I and II only
• B)I and III only
• C)II and III only
• D)II and IV only
• E)III and IV only

---

Definitions:

Consumer Protection

Laws and regulations intended to safeguard buyers of goods and services from unfair, deceptive, or harmful practices by sellers.

Whistle-blower

An individual who exposes illegal, unethical, or wrong practices within an organization to the public or to authorities.

Additives

Substances added to products, such as food or fuel, to enhance their properties or preserve their quality.

Secretly

The act of keeping something hidden or undisclosed from others.