reverse split
Học thuậtThân thiện
Definition
- Noun:
- A corporate action that reduces the number of a company's outstanding shares without changing the total value of shareholders' equity: A reverse split consolidates existing shares into fewer, proportionally more valuable shares. It is the opposite of a traditional stock split.
Usage and Examples
- Noun:
- The company announced a 1-for-10 reverse split to increase its share price and meet the exchange's minimum listing requirements.
- After the reverse split, each shareholder received one new share for every five old shares they owned.
- A reverse split does not, by itself, change the market capitalization of the firm.
Advanced Usage
- "to undergo a reverse split": to experience this corporate action.
- The struggling biotech firm was forced to undergo a reverse split.
- "reverse split ratio": the specific consolidation ratio (e.g., 1-for-5, 1-for-10).
- The board approved a reverse split ratio of 1-for-20.
Variants and Related Words
- Reverse stock split (n): A full term synonymous with "reverse split."
- The reverse stock split became effective at the close of trading today.
- Share consolidation (n): A common alternative term, especially in British English.
- Stock merge (n): An informal term for the same action.
Synonyms
- Share consolidation
- Stock consolidation
Antonyms
- Stock split: A corporate action that increases the number of outstanding shares.
- Forward split: Another term for a traditional stock split.
Related Financial Terms
- Outstanding shares: The total number of shares of a corporation that are currently held by all its shareholders.
- Shareholders' equity: The owners' residual claim on assets after debts have been paid.
- Par value: The face value of a stock, which may be adjusted during a reverse split.
Noun
- a decrease in the number of outstanding shares of a corporation without changing the shareholders' equity