Question

mr.ujulu owned 100 shared of 10 par value stock . he then received in exchange 200 share of 5 par value stock .this is referred to as a(n)​

Answer 1

his is referred to as a reverse stock split

Step-by-step explanation:

In a reverse stock split, a company reduces the number of shares outstanding by consolidating them into fewer, higher-value shares. In this scenario, Mr. Ujulu owned 100 shares of 10 par value stock, and then received 200 shares of 5 par value stock in exchange, which means that the company has reduced the number of shares outstanding by consolidating them into fewer, higher-value shares. This can be done to increase the stock price or to meet the listing requirements of a stock exchange.