In corporate finance, a reverse stock split or reverse split is a process by which a shares of corporate stock are effectively merged to form a smaller number of proportially more valuable shares. There are many ways to effect this; one simple way is the corporation to cancel a uniform fraction of each shareholder's shares.

In the process of reverse split, company will merge its outstanding stocks with pre decided ratio. This will avoid investors to think that stocks are cheap and trading blindly.

In the process of reverse split, company will merge its outstanding stocks with pre decided ratio. This will avoid investors to think that stocks are cheap and trading blindly.