Generally, managers use a reverse stock split to

Question

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Managers use a reverse stock split to meet the minimum requirements to be listed on one of the major stock exchanges. By decreasing the number of outstanding shares, the company increases the share price to meet the exchange's minimum listing requirements. This can make the company more attractive to investors and increase its visibility in the market. Options A, C, and D are incorrect as they do not accurately reflect the purpose of a reverse stock split.

Generally, Managers Use a Reverse Stock Split to