We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.


Reverse Stock Split

Categories: Stocks, Metrics

Sort of like a stock regeneration. Instead of 1 share becoming 2 (like in a stock split), 2 shares become 1. Your investment is worth the same overall, but the window-dressing makes it all look more impressive.   

Example

If you had 20 shares at $10 before the reverse, you'll have 10 shares worth $20 after, but your investment is still worth $200.

Find other enlightening terms in Shmoop Finance Genius Bar(f)