A Reverse Stock Split Reduces the Market Value Per Share

question 146

True/False

A reverse stock split reduces the market value per share and the par value per share of stock.

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Definitions:

Forgery

The act of falsely making or altering a writing with the intent to defraud, such as signing another person’s name to a check without authorization.

Fraudulently

Acting with intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Marginal Cost

The supplementary expense resulted from manufacturing one extra unit of a good or service.

Variable Cost

A cost that varies with the level of output or production, such as materials and labor costs.