Question: A reverse stock split occurs when a company wants to increase the price of its common stock because the market hasn't recognized the improvements the

A reverse stock split

occurs when a company wants to increase the price of its common stock because the market hasn't recognized the improvements the company has made in achieving profitability.

means the company exchanges fewer new shares in place of more older shares.

eliminates any previous stock dividend.

is more popular in bull markets than in bear markets.

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