What is a Reverse Stock Split | Definition | What are they?

What is a Reverse Stock Split

What is a Reverse Stock Split | Definition

A proportionate decrease in the number of shares, but not the 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 one share for every three shares owned before the split. A firm generally institutes a reverse split to boost its stock's market price and attract investors.

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