Reverse stock split - A proportionate decrease in the number of shares, but not the total value of shares of stock held by shareholders. Shareholders maintain the same percentage of equity as before the split. For example, a 1-for-3 split would result in stockholders owning 1 share for every 3 shares owned before the split. After the reverse split, the firms stock price is, in this example, worth three times the pre-reverse split price. A firm generally institutes a reverse split to boost its stocks market price. Some think this supposedly attracts investors.
Reverse stock split : a proportionate decrease in the number of shares, but not the total value of shares of stock held by shareholders. shareholders maintain the same percentage of equity as before the split. for example, a 1-for-3 split would result in stockholders owning 1 share for every 3 shares owned before the split. after the reverse split, the firms stock price is, in this example, worth three times the pre-reverse split price. a firm generally institutes a reverse split to boost its stocks market price. some think this supposedly attracts investors.
Reverse stock split