Reverse stock splits reduce the number of shares outstanding,and thus have which of the following effects on stock price?

Question

Quizplus · Accepted Answer

Reverse stock splits reduce the number of shares outstanding while maintaining the same market capitalization. The reduced supply of shares usually leads to an increase in the stock price, making it more attractive to investors as it increases the stock's value per share. Therefore, option B is the correct answer.

Reverse Stock Splits Reduce the Number of Shares Outstanding,and Thus