Question
A 1-for-20 reverse stock split will increase Blank______.
Multiple choice question.
a $1 par value by $20
the number of shares by 400 percent
a $1 par value to $20
the par value by 25 percent
Multiple choice question.
a $1 par value by $20
the number of shares by 400 percent
a $1 par value to $20
the par value by 25 percent
Answers
GPT-4o mini
A 1-for-20 reverse stock split will increase **a $1 par value to $20**.
In a reverse stock split, the number of shares decreases while the par value increases proportionally. So, if you start with a $1 par value for one share and perform a 1-for-20 reverse stock split, the new par value will be $20 for one share.
In a reverse stock split, the number of shares decreases while the par value increases proportionally. So, if you start with a $1 par value for one share and perform a 1-for-20 reverse stock split, the new par value will be $20 for one share.