Ina reverse stock split, ________________.

Question

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In a reverse stock split, the number of shares outstanding decreases, but owners' equity is unchanged. This means that each shareholder has a smaller number of shares, but the value of each share increases proportionally to maintain the same overall equity in the company. For example, in a 1-for-10 reverse split, a shareholder with 100 shares would end up with 10 shares, but each share would be worth 10 times as much as before. This is often done to increase the price per share and make the stock more attractive to investors, or to meet listing requirements on a stock exchange. None of the other options listed accurately describe a reverse stock split.

Ina Reverse Stock Split, ________________