1. 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.
2. Which of the following is not commonly used to minimize transaction exposure in foreign exchange dealings?
Hedging in the forward exchange market
Hedging in the money market
Hedging in the stock market
Hedging in the currency futures market