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.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). reverse split. Retrieved September 21, 2026, from http://smartdefine.org/reverse_split/definitions/1162538 |
| Chicago | Barry Goldsmith. 2010. "reverse split" http://smartdefine.org/reverse_split/definitions/1162538 (accessed September 21, 2026). |
| Harvard | Barry Goldsmith 2010, reverse split, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/reverse_split/definitions/1162538>. |
| MLA | Barry Goldsmith. "reverse split" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/reverse_split/definitions/1162538> |