Stocks

Reverse split

A reduction in shares outstanding that proportionally increases price per share without itself changing total equity value.

Plain-English context

Put the definition to work.

ILLUSTRATIVE EXAMPLE

A 1-for-10 reverse split can turn 100 shares at $1 into ten at $10 mechanically, leaving initial total value unchanged before market response and rounding effects.

IMPORTANT DISTINCTION

A higher per-share quote does not by itself improve business value; fractional-share treatment and market response can change holdings.

Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — investing glossary

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