a decrease in a corporation's number of outstanding shares of stock without any change in the shareholder's equity or the aggregate market value at the time of the split

a method that reduces the number of a company's outstanding shares and that, at the same time, increases the par value of the individual shares

a negative split where you end up with fewer shares than before

Occurs when a corporation reduces the number of shares outstanding by reorganizing its capitalization structure. Here, fewer shares may be an effort to have a higher unit share price. One motivation for this is that some exchanges have listing/delisting criteria of which share price is a factor. The proportional ownership of the shareholders does not change but the shares held do change.

This is a reduction in the number shares outstanding for a corporation. It is usually used to boost the shareprice from a low to higher price. It does not change the total market value. It simply reduces the number of shares outstanding and raises the price. If an investor had 500 shares of a stock at $1.00, and the company did a 1 for 5 reverse split; the shareholder would now have 100 shares at $5.00.

A stock "split" in which the number of outstanding shares is reduced. See: Split.

A means by which a corporation reduces the number of shares outstanding by issuing one new share for more than one old share. For example, a Corporation calls all of its old shares and issues one new share for each five old shares held. The purpose of such a move would be to increase the price per share in the market.

The exchange of a greater number of a company's shares for a lesser number. For example, exchanging three shares for one. This results in a higher share price and less shares outstanding. This is also called a consolidation or a negative split.

Procedure whereby a corporation reduces the number of outstanding shares. The total market value of the shares remains the same after the reverse split, however, a share is worth more. A company, for example, executes a 1 for 2 split. An investor owning 1000 shares will deliver them to the issuer and they will receive half as many new shares--but the shares will have double the value of the original shares. Thus, the investor now has 500 shares with a value of $8, instead of 1000 at $4--that is, the investor shares are worth the same amount as before the split. Reverse splits may be used by corporations whose shares are selling at very low market prices. They believe that if the security's price is raised, it will attract more investors. See: Common Stock; Outstanding Stock; Par; Split

Reverse splits involve consolidation of the number of shares outstanding, thereby increasing the share price. For example, a corporation whose shares trade at $2 with 1 million shares outstanding that undergoes a 5-for-1 reverse split will be left with 200,000 shares outstanding, with a $10 share price.

The reduction in a corporation's outstanding common stock. This is accomplished by replacing outstanding common stock by fewer shares and increasing the stated or par value per share. The total number of shares will have the same market value immediately after the reverse split as before.

It occurs when a corporation reduces the number of shares outstanding by reorganising its capital structure. Here, fewer shares may be an effort to have a higher unit share price.