Question

Select all that apply

Which of the following are reasons for reverse stock splits?

Multiple select question.

To eliminate small shareholders


To lower the par value per share


To raise stock prices to respectable levels


To comply with listing requirements

Answer 1

The reasons for reverse stock splits include:

- To raise stock prices to respectable levels
- To comply with listing requirements

The other two options, "To eliminate small shareholders" and "To lower the par value per share," are not typically primary reasons for conducting a reverse stock split.

Answer 2

To eliminate small shareholders is also correct