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Which of the Following Statements Is NOT True

Question 85

Multiple Choice

Which of the following statements is NOT true?


A) A straight stock split is often taken to engineer a stock's price down into the preferred trading range.
B) A reverse split is often taken to engineer a stock's price up into the preferred trading range.
C) After a straight stock split,the equity value of the company increases because there are now more shares to trade.
D) Researchers have found that after a straight stock split,companies generally tend to move into the preferred trading range of $20 to $40 a share.

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