Advertising

Reverse stock split

• A method used to raise the market price of a firm's stock by exchanging a certain number of outstanding shares for one new share of stock.

• 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 1 share for every 3 shares owned before the split. After the reverse split, the firm's stock price is, in this example, worth three times the pre-reverse split price. A firm generally institutes a reverse split to boost its stock's market price and attract investors.

 
 

Follow this link for all the terms related to stock.

 
 Embedded terms in definition
 Equity
Firm
Held
Its
Market
Outstanding shares
Reverse split
Reverse
Shareholders
Shares
Share
Split
Stock
 
 Related Terms
 

<< Reverse split Reverse tac >>

Beware of fraud originating in phone messages and faxes: FDIC Consumer News has warned before about crooks who call or e-mail consumers and pretend to be legitimate companies or government agencies wanting people to "verify" or "resubmit" (divulge) confidential information such as bank account or credit card numbers as well as Social Security numbers, passwords and personal identification numbers. Here are variations to know about. More...

Do not let yourselves be discouraged or embittered by the smallness of the success you are likely to achieve in trying to make life better. You certainly would not be able, in a single generation, to create an earthly paradise. Who could expect that? But, if you make life ever so little better, you will have done splendidly, and your lives will have been worthwhile. - Arnold Toynbee

Advertising



Copyright 2009-2019 GVC. All rights reserved.