Series 7 - General Securities Representative Exam
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When is a company MOST likely to perform a reverse stock split?
To create more shares for new investor demand
A
When the stock price is too high
B
During times of financial success
C
During times of financial distress
D
Explanations
Reverse splits are usually not a good omen for a stock. They may need to keep their share price above a certain level in order to continue being listed on an exchange. The reverse split raises the price per share and lowers the amount of shares outstanding
Pricing
Basic
Part of the questions for each course
-
- Course
- Questions
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- SIE
- 20 of 150
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- Series 6
- 30 of 500
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- Series 7
- 50 of 625