What Is Reverse Split?

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What Is Reverse Split?..

Answer / chandu

reverse split is the decrease the no of shares and increase
the share prise. It is not affected the worth of the share
holders.this is used for attract rhe investors.

Is This Answer Correct ?    8 Yes 3 No

What Is Reverse Split?..

Answer / aditi

reverse split


Definition
A stock split which reduces the number of outstanding shares and increases the per-share price proportionately. This is usually an attempt by a company to disguise a falling stock price, since the actual market capitalization of the stock does not change at all. For example, if a company declares a one-for-ten reverese split, then a person who previously held 20 shares valued by the market at $1 each will then have 2 shares worth $10 each. Many stock exchanges in the U.S. do not allow companies with a stock price of less than $1 to remain listed, and many such companies then have to undertake reverse splits if they want to remain listed.

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