Reverse Split (Noun)
Meaning
A decrease in the number of outstanding shares of a corporation without changing the shareholders' equity.
Classification
Nouns denoting acts or actions.
Examples
- The company announced a one-for-five reverse split to increase its stock price and improve investor interest.
- As part of its rebranding effort, the corporation will implement a one-for-ten reverse split to simplify its financial statements.
- The firm's board of directors has decided to conduct a reverse split of its outstanding shares to boost its low stock price.
- Investors reacted cautiously to the news of the reverse split, which reduced the number of shares outstanding but did not affect shareholder equity.
- The reverse split of its stock allowed the company to meet the minimum price requirements for listing on the major exchange.