Identify and explain two reasons for reverse stock splits

What will be an ideal response?


Answer: A reverse stock split, as its name implies, is just the opposite of the more commonly recognized stock split. With a reverse stock split, a firm divides its number of outstanding shares into a lesser amount of outstanding shares. Two reasons are sometimes cited for splits like these. First, if a stock is trading below its preferred trading range, a reverse stock split is a way to immediately increase the price-per-share of stock and return to the preferred price-per-share trading range. More concretely, a reverse stock split may take place to avoid sanctions from the NASDAQ rule that stocks trading below $1 per share for more than 30 days can be delisted.

Business

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In mass service and professional service, the operations manager should focus extensively on:

A) automation. B) equipment maintenance. C) sophisticated scheduling. D) human resources. E) cost-cutting initiatives.

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In order to minimize Technical Barriers to Trade, which method does the TBT Agreement set out?

a. Harmonization b. Equivalence c. Mutual recognition d. All of the above

Business

In the context of business presentations, to listen better one shouldbegin speaking the moment the presenter stops talking.

Answer the following statement true (T) or false (F)

Business