a On January 4, 2011, the stockholders of record as of the close of business on December 21, 2010 (the Record Date) received one (1) share of Motorola Mobility common stock for each eight (8) shares of Motorola Inc Describe this distribution b Does the name change c Describe the reverse stock split...

a Motorola Inc split off part of its company to a new separate company called Motorola Mobility M ...

a. On January 4, 2011, the stockholders of record as of the close of business on December

Question:

a. On January 4, 2011, the stockholders of record as of the close of business on December 21, 2010 (the “Record Date”) received one (1) share of Motorola Mobility for each eight (8) shares of Motorola Inc. Describe this distribution.
b. Does the name change?
c. Describe the reverse stock split.
d. Why would they do a reverse split?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...