06/17/2026
A normal stock could be $4 and a reverse Stock Split will now make it $8 The price of Stock Increases and the amount of stock a shareholder has decreases.
Example: $4 for 100 stocks but after Reverse STOCK SPLIT
Shareholder now has stock for $8 and has 50 Shares
A reverse stock split occurs when a company reduces its total number of outstanding shares. Outstanding shares refer to a company's stock currently held by all shareholders, including institutional investors, insiders, and the general public. This figure excludes treasury shares that the company has repurchased and holds on its own balance sheet.
Unissued shares do not count.
Why do companies do this? Usually, companies execute a reverse stock split to artificially boost their share price so they do not get delisted from major stock exchanges (which often require a minimum price of $1 per share).
