Reverse Splits Are a Technique Used by Some NASDAQ-Traded Firms

question 52

True/False

Reverse splits are a technique used by some NASDAQ-traded firms to prevent their share prices from falling below a threshold that will give the NASDAQ the option to delist the stock.

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Definitions:

Central Hudson

Refers to a legal test used in the United States to determine when the government can legitimately regulate commercial speech.

R.J.Reynolds Tobacco

An American tobacco manufacturing company known for designing several popular cigarette brands, playing a significant role in the history and development of tobacco marketing.

Commercial Speech

Communication in the form of advertising. It is speech done on behalf of a company or individual for the intent of making a profit.

First Amendment

Part of the U.S. Constitution that protects freedoms concerning religion, expression, assembly, and the right to petition.