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

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A reverse stock split reduces the number of shares outstanding and proportionally increases the stock price, which can make the stock appear more valuable and attractive to certain investors.

A Reverse Stock Split Is Sometimes Undertaken by a ﬁRm