The purpose of a reverse stock split is to ________.
A) issue additional shares
B) increase the dividend
C) increase the price of a stock
D) decrease trading activity

Question

Quizplus · Accepted Answer

A reverse stock split reduces the number of outstanding shares, which increases the price of each share. This is typically done in an effort to boost the company's stock price and make the stock more appealing to potential investors. It does not involve issuing additional shares, increasing dividends, or decreasing trading activity.

The Purpose of a Reverse Stock Split Is to ________