Investor Glossary-reverse stock splitInvestor Glossary-reverse stock splitInvestor Glossary-reverse stock splitInvestor Glossary-reverse stock splitInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Reverse Stock Split

The HTML to link to this page
 

A reverse stock split is a method used by a corporation to reduce its number of shares outstanding, while increasing proportionate per-share price. A reverse stock split is the opposite or reverse of a stock split, where shares are increased. A reverse stock split does not change the total value of outstanding shares, rather increases what each share is worth. An example of a reverse stock split is a 1-for-3 split, which would result in shareholders owning one share of stock for every three shares previously owned before the reverse stock split. Corporations often use a reverse stock split to amplify the price of their stock and attract investors. However, many investors do not look favorably upon a reverse stock split, as a corporation can use a reverse stock split to hide falling stock prices.



Rate this reverse stock split definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: quality assurance, minority interest, command economy, Zero Cost Collar, APR, annual return, Key Rate Duration, average price per share, ex-dividend date, phantom income, risk management, in escrow, EBITDA, diluted share, option premium, cancelled check, covered put, required rate of return, labor relations, VIX, balance sheet, current ratio, LIBOR, real GDP, 401a, debt service coverage, 1031 exchange, margin rate, 144a, liquidity ratio, class C shares, wholly-owned subsidiary, deferred tax, irrevocable trust, 1035 exchange, stock market close, deferred revenue, implied volatility, reverse mortgage, retained earnings, dividends payable, inflation, stock split, open position, limit order, ex-dividend, FICO score, FTSE, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use