• Reverse Stock Split or Reverse Split
    Reverse Stock Split

    Reverse Stock Split

    What is a Reverse Stock Split? A reverse stock split is an action taken by the firm to reduce the outstanding shares by increasing the price per share. It is also known as a stock merge or reverse split. This split merged the larger number of shares to smaller and shares price increased from small amounts to large. Similarly, it does not affect the total value of the firm. Some examples are 2-for-3, 3-for-5 reverse stock split. The opposite of it a stock split, a stock split is an action taken or technique used by a firm (company, corporate) to increase the number of shares outstanding by reducing the par…