Important Financial Investment Terms
Thousands of investors have told us they are confused by the investment jargon that is used by financial advisors. We also know some terms, that investors don't understand, are used by advisors as sales ploys. They establish themselves as experts when they define a term you may not understand.
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Definition of 'Reverse Stock Split'
A proportionate decrease in the number of shares A 1-for-3 split would result in stockholders owning one share for every three shares owned before the split, and the firm’s stock price would be adjusted as well. Therefore the shareholders shares will be equal to the total value prior to the split. A firm generally institutes a reverse split to boost its stock's market price.