Answer-first summary for fast verification
Answer: A reduction in the number of shares outstanding and a corresponding increase in the share price.
A reverse stock split involves a reduction in the number of shares outstanding, which leads to a corresponding increase in the share price. Option B describes a regular stock split, not a reverse stock split. Option C is incorrect because a reverse stock split does not result in an increase in the number of shares outstanding.
Author: LeetQuiz Editorial Team
Ultimate access to all questions.
No comments yet.
All else being equal, a reverse stock split results in:
A
A reduction in the number of shares outstanding and a corresponding increase in the share price.
B
An increase in the number of shares outstanding and a corresponding decrease in the share price.
C
An increase in the number of shares outstanding and an increase in the share price.