Shouldn’t the answer be stock split given the price decreases when the outstanding shares increase in volume?
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The shares of the company are trading at very low prices and when shares trade at such low prices, the stock may get illiquid and therefore to improve the liquidity of the stock or probably to avoid getting delisted from the stock exchanges, the company may go for a reverse stock split where the share price increases as the no of outstanding shares goes down.
A stock split is done in an opposite scenario where the share price that is currently trading in the market is already very high due to which many retail investors are not able to invest in the stock. In such a case, the company may go go for a stock split which would bring the share price down and increase the no of outstanding shares.
the answer should be reverse stock split bcz the company wants high quality investors (institutional and HNIs) on board and not scattered retail investors hence, they do reverse stock split to increase their share prices without any impact on mkt cap.
stock split is done when the share price is too high to invest in.