Reverse Stock Split
A reduction in the number of a corporation's shares outstanding that increases the par value of its stock or its earnings per share. The market value of the total number of shares (market capitalization) remains the same. Investopedia Says:
For example, a 1-for-2 reverse split means you get half as many shares, but at twice the price. It's usually a bad sign if a company is forced to reverse split - firms do it to make their stock look more valuable when, in fact, nothing has changed. A company may also do a reverse split to avoid being delisted. Related Terms:
Delisting
Earnings Per Share - EPS
Market Capitalization
Outstanding Shares
Par Value
Record Date
Scrip
Split-Off
Split-Up
Stock Split |