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Reverse split

A stock split which reduces the number of Outstanding shares and increases the per-share price proportionately. This is usually an attempt by a company to disguise a falling stock price, since the actual Market capitalization of the stock does not change at all. For example, if a company declares a one-for-ten reverese split, then a person who previously held 20 shares valued by the Market at $1 each will then have 2 shares worth $10 each. Many stock exchanges in the U.S. do not allow companies with a stock price of less than $1 to remain Listed, and many such companies then have to undertake reverse splits if they want to remain listed.

Related Terms: 17 ACH, Capital, Cap, Declare, Exchange, Inc., ITS, Listed, Low, Market capitalization, Market cap, Market, Outstanding, Reverse split, Share, Stock exchange, Share price
Other Related Pages: Category: Stocks Starting With: R
Semi Related Terms: 780 CLICK HERE TO VIEW
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