In a reverse stock split, ____.
A) the number of shares are decreased
B) the market value is decreased
C) retained earnings decrease
D) par value decreases

Question

Quizplus · Accepted Answer

In a reverse stock split, the number of shares are decreased. For example, if a company has 100 shares outstanding and does a 1-for-10 reverse stock split, it will now have 10 shares outstanding, but the value of each share will increase by a factor of 10.

In a Reverse Stock Split, ____