A reverse stock split associated with a cash buyout is sometimes used as a means of

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A reverse stock split involves reducing the number of outstanding shares, which can result in eliminating small stockholders who hold fewer than the minimum required number of shares. This is often done in conjunction with a cash buyout or merger to make the transaction more efficient and cost-effective. By eliminating small stockholders, the company can simplify the transaction, reduce administrative costs, and avoid having to deal with fractional shares.

A Reverse Stock Split Associated with a Cash Buyout Is