A reverse split increases the total market value held by each stockholder.

Name: A reverse split increases the total market value held by each stockholder.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

A reverse split reduces the number of shares outstanding but does not inherently increase the total market value held by each stockholder; it's a cosmetic change meant to increase the stock price per share without affecting the company's overall market capitalization.

A Reverse Split Increases the Total Market Value Held by Each