What could a corporation do if they want to decrease the number of shares available to the public?

Issuing a reverse stock split is a strategy employed by a corporation to reduce the number of shares available to the public while simultaneously increasing the nominal value of each share. In a reverse stock split, shareholders exchange a certain number of their existing shares for a smaller number of new shares. For instance, in a 1-for-10 reverse stock split, shareholders who previously held 10 shares would now hold 1 share, but that share would be worth ten times what each original share was worth before the split. This process does not change the overall market capitalization of the company, but it effectively decreases the number of shares outstanding, which can enhance the stock's appearance and potentially attract new investors.

The other options do not directly achieve the goal of decreasing the number of shares available to the public. A stock split increases the number of shares and lowers the share price. Increasing shareholder dividends does not affect the share count. Merging with another corporation does not inherently reduce shares unless a specific reverse split is involved in the merger process. Thus, the most effective and direct method for reducing the number of public shares is through a reverse stock split.