Which of the Following Is Not True Regarding a Reverse

question 15

Multiple Choice

Which of the following is not true regarding a reverse stock split?

• A)Firms reduce the number of outstanding shares by increasing the par value of the stock.
• B)Firms reduce the number of outstanding shares by canceling outstanding shares.
• C)A reverse stock split usually increases the market value per share in inverse proportion to the reverse split.
• D)Managers and governing boards might use reverse stock splits to keep the market price per share within some target trading range.
• E)Analysts use reverse stock splits to signal that the market price per share will go up disproportionately.

---

Definitions:

Antianxiety Drug

Medication that reduces or controls anxiety symptoms.

Withdrawal

The process of reducing or stopping the use of a psychoactive substance, which can lead to various physical and psychological symptoms.

Serotonin Reuptake Inhibition

The process by which serotonin reuptake inhibitors (SSRIs) increase serotonin levels in the brain by preventing its reabsorption into neurons.

Antidepressant Drugs

Medications used to treat depressive disorders by altering neurotransmitter levels in the brain, improving mood and emotional states.