A Reverse Stock Split

question 53

Multiple Choice

A reverse stock split

• A) has the same price effect as a large stock dividend.
• B) will reduce the company's Retained Earnings.
• C) should increase the market price per share.
• D) will decrease the par value per share.

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Definitions:

Locus of Control

A psychological concept referring to an individual's belief about how much control they have over the outcomes of events in their lives.

Satisfaction

A measure of how products or services meet or surpass customer expectation.

Postpurchase Cognitive Dissonance

The psychological conflict or anxiety that consumers may experience after making a difficult purchase decision, often involving doubt about the purchase.

Cognitive Bias

is a systematic pattern of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.