Reverse stock splits take place in many cases
A) to avoid delisting by the stock exchanges and NASDAQ.
B) to decrease the market price of the common stock.
C) because there may be simply too many shares outstanding from previous stock splits.
D) all of these options are correct.

Question

Quizplus · Accepted Answer

Reverse stock splits are often used to increase the market price of a stock to avoid delisting from stock exchanges, which have minimum price requirements.

Reverse Stock Splits Take Place in Many Cases