What is a Reverse Stock Split?

Modified on Tue, 3 Dec, 2024 at 11:20 PM

Reverse Stock Split, also known as a stock consolidation or reverse stock split, is a corporate restructuring strategy where multiple shares are combined into fewer shares, usually to increase the stock price. A reverse stock split does not change the company’s total market value or the overall investment value of shareholders; it only adjusts the number of shares and the market price per share.

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