Multiple Choice
Reverse stock splits take place in many cases
A) to avoid delisting by the stock exchanges and NASDAQ.
B) to decrease the market price of the common stock.
C) because there may be simply too many shares outstanding from previous stock splits.
D) all of these options are correct.
Correct Answer:

Verified
Correct Answer:
Verified
Q101: In the initial stage (Stage I), the
Q102: In which phase of the life cycle
Q103: A reverse stock split is normally used
Q104: A stock split<br>A) is treated by accountants
Q105: One of the major influences on dividends
Q106: A stock split involves a reduction in
Q107: CBA Inc. has 400,000 shares outstanding with
Q108: Stockholders in general prefer large dividends to
Q109: A rapid growth firm can often expect
Q111: Because the capital gains tax is lower