Definitions for reverse stock split
re·verse stock split

Princeton's WordNetRate this definition:0.0 / 0 votes

1. reverse split, reverse stock split, split downnoun

   a decrease in the number of outstanding shares of a corporation without changing the shareholders' equity

ChatGPTRate this definition:0.0 / 0 votes

1. reverse stock split

   A reverse stock split is a corporate action undertaken by a company to reduce the number of shares in circulation, thereby increasing the value of individual shares. This process involves the company dividing its existing total quantity of shares by a predetermined number, such as 5 or 10, which will be the new total number of shares. It does not change the company's market capitalization as the increase in share price offsets the decrease in number of shares outstanding. This action is often used by companies to meet stock exchange listing requirements or to make the stock's price more attractive to investors.

WikidataRate this definition:0.0 / 0 votes

1. Reverse stock split

   On a stock exchange, a reverse stock split or reverse split is a process by a company of issuing to each shareholder in that company a smaller number of new shares in proportion to that shareholder's original shares that are subsequently canceled. A reverse stock split is also called a stock merge. The reduction in the number of issued shares is accompanied by a proportional increase in the share price. New shares are typically issued in a simple ratio, e.g. 1 new share for 2 old shares, 3 for 4, etc. A reverse split is the opposite of a stock split. Typically, the stock will temporarily add a "D" to the end of its ticker during a reverse stock split. Sometimes a company may concurrently change its name. This is known as a name change and consolidation. There is a stigma attached to doing a reverse stock split, so it is not initiated without very good reason and may take a shareholder or board meeting for consent. Many institutional investors and mutual funds, for example, have rules against purchasing a stock whose price is below some minimum, perhaps US$5. In an extreme case, a company whose share price has dropped so low that it is in danger of being delisted from its stock exchange, might use a reverse stock split to increase its share price. For these reasons, a reverse stock split is often an indication that a company is in financial trouble.

Matched Categories

1. • Decrease

How to pronounce reverse stock split?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say reverse stock split in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of reverse stock split in Chaldean Numerology is: 3

2. Pythagorean Numerology

   The numerical value of reverse stock split in Pythagorean Numerology is: 2

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=reverse stock split
2. ^ ChatGPT
   https://chat.openai.com
3. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=reverse stock split