SIE Exam Practice Question 599
Question: 599
Which of the following is/are correct regarding stock splits and reverse stock splits?
(1) A 3-for-1 stock split will decrease a stock's market price per share.
(2) A reverse stock split is intended to increase a stock's market price per share.
Correct Answer: C
Explanation:
A 3-for-1 stock split will decrease a stock's market price per share. A reverse stock split is intended to increase a stock's market price per share.
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