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What are stock splits and reverse splits?

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What are stock splits and reverse splits?
posted Jul 6, 2017 by Tanmay

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1 Answer

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Stock splits
A corporate action in which a company divides its existing shares into multiple shares. Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre-split amounts, because the split did not add any real value.
Reverse stock
A reverse stock split is a corporate action in which a company reduces the number of shares it has outstanding by a set multiple. This is the opposite of a stock split, in which a company increases its outstanding shares by a set multiple.

answer Jul 7, 2017 by Chetan Hindu
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