Reverse Stock Split
Reverse Stock Split is am action when the company decreases the number of the shares outstanding, while the price of each share increases proportionally but the market capitalization (total market value of shares outstanding) remains the same.
Reverse stock split is in general a sign that particular company is not doing well on the market, and tries to make stocks more valuable artificially. In addition, since many stock exchanges do not list shares with price less than $1, reverse stock split can be the way to elude being delisted.
Company can do a reverse stock split in any number of ways, like one for two, two for three, one for ten etc.
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