A reverse stock split a. is more popular in bull markets than in bear markets. b. eliminates any previous stock dividend. c. occurs when a company wants to increase the price of its common stock because the market hasn't recognized the improvements the company has made in achieving profitability. d. means the company exchanges fewer new shares in place of older shares.
A reverse stock split a. is more popular in bull markets than in bear markets. b. eliminates any previous stock dividend. c. occurs when a company wants to increase the price of its common stock because the market hasn't recognized the improvements the company has made in achieving profitability. d. means the company exchanges fewer new shares in place of older shares.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A reverse stock split
a. is more popular in bull markets than in bear markets.
b. eliminates any previous stock dividend.
c. occurs when a company wants to increase the price of its common stock because the market hasn't recognized the improvements the company has made in achieving profitability.
d. means the company exchanges fewer new shares in place of older shares.
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