A Reverse Stock Split, 1 for 10 for Example, Should

question 22

True/False

A reverse stock split, 1 for 10 for example, should result in a higher price per share.

---

Definitions:

Cumulative Effect

The total impact of one or more changes in accounting policies or corrections of errors made in previous years, reflected in the current year's financial statements.

Just-In-Time Inventory

A strategy that companies use to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.

Income Taxes

Taxes imposed on individuals or entities' net income by the government to fund public expenses.

Total Assets

The sum of all current and noncurrent assets owned by a business, reflecting its overall resources.