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Stock Market Investing > Learn Stock Market Investment > What is a reverse stock split?
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What is a reverse stock split?

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Professional Stocks and Forex trader with 4 years of experience.

A reverse stock split is when a company reduces the number of its outstanding shares, consolidating them to increase the share price, while maintaining the overall market capitalization and value of an investor's holdings.
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Professional Stocks and Forex trader with 4 years of experience.

A reverse stock split is a corporate action where a company reduces the number of its outstanding shares by consolidating them into a smaller number. Unlike a regular (forward) stock split, where shareholders get more shares at a lower price, in a reverse stock split, shareholders receive fewer shares...
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A reverse stock split is a corporate action where a company reduces the number of its outstanding shares by consolidating them into a smaller number. Unlike a regular (forward) stock split, where shareholders get more shares at a lower price, in a reverse stock split, shareholders receive fewer shares at a higher price. This is often done to increase the stock's per-share value, meet listing requirements, or improve the company's image. read less
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