A reverse stock split is sometimes undertaken by a firm that wishes to make its stock price more appealing to the average investor.

Name: A reverse stock split is sometimes undertaken by a firm that wishes to make its stock price more appealing to the average investor.
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Question

Quizplus · Accepted Answer

A reverse stock split reduces the number of shares outstanding, which typically increases the price per share, making the stock appear more valuable and potentially more appealing to investors.

A Reverse Stock Split Is Sometimes Undertaken by a Firm