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 >>

Teaching Children the Financial Facts of Life: Showing the importance of saving, spending wisely and sharing with others More...

If you achieve success, you will get applause, and if you get applause, you will hear it. My advice to you concerning applause is this; enjoy it but never quite believe it. Robert Montgomery

Advertising



Copyright 2009-2019 GVC. All rights reserved.