One of the mysteries of the English language finally explained.
A reduction in the number of a company's traded shares that results in an increase in the par value or earnings per share.
- ‘Salon Media Group is asking its shareholders to approve a reverse split of the company's stock.’
- ‘Lucent Technologies Inc, which has fallen from telecommunications bellwether to penny stock in less than three years, plans a reverse split of its shares to avoid being delisted from the New York Stock Exchange.’
- ‘The proposal, which is subject to shareholder approval, calls for a reverse split in which each 200 common shares outstanding would be combined into one share.’
- ‘Trintech also announced a four-for-one reverse split in its Nasdaq shares to prevent the company being compulsorily delisted from the exchange.’
- ‘At the time, the shares were trading at $1.10, and they were still trading at about that price last week, so the reverse split has done little to increase returns.’
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