Generally, Managers Use a Reverse Stock Split to

question 62

Multiple Choice

Generally, managers use a reverse stock split to

• A) send a signal to investors that the company is expected to perform poorly.
• B) meet the minimum requirements to be listed on one of the major stock exchanges.
• C) increase the liquidity of shares by decreasing the number of share available.
• D) reduce the administrative costs associated with investor relations.

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Definitions:

Poor Quality

Refers to products or services that fail to meet acceptable standards or specifications, leading to customer dissatisfaction.

Six Sigma

A quality management methodology aimed at reducing defects and improving processes, utilizing statistical analysis to achieve near-perfect performance.

Misplaced Luggage

Luggage that has been wrongly placed or lost during transit, commonly in the context of air travel.