Ontario Barrister and Solicitor Practice Exam 2026 - Free Barrister and Solicitor Practice Questions and Study Guide

Question: 1 / 400

What constitutes a share consolidation?

Merging two companies' shares into one.

Splitting shares into smaller units.

A going private transaction inflating share values such that minority shareholders receive cash.

A share consolidation refers to a company reducing the number of shares outstanding and increasing the value of each share. Option A is incorrect because merging shares into one would not result in a reduction of outstanding shares. Option B is incorrect because splitting shares into smaller units would result in an increase in the number of shares, not a decrease. Option D is also incorrect because increasing share capital would result in the issuance of new shares, not a reduction in outstanding shares. A going private transaction does not necessarily involve merging two companies and it does not involve splitting shares or issuing new shares. Therefore, option C is the most accurate answer.

Get further explanation with Examzify DeepDiveBeta

Increasing the share capital without issuing new shares.

Next Question

Report this question

Download Ontario Barrister and Solicitor Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy