what are reverse stocksplits



2
what are reverse stocksplits

1 Answer(s)


0

If a company perceives that its stock price is too low it can go for a REVERSE SPLIT. It is usually done to prevent inexperienced traders with unrealistic expectations to invest in such shares. Shares which are trading at a very low price are technically called PENNY STOCKS. A company in such a situation will reduce the number of shares outstanding causing a corresponding increase in its share prices keeping the issued capital same as before reverse split.

Your Answer

Click on this code-snippet-icon icon to add code snippet.

Upload Files (Maximum image file size - 1.5 MB, other file size - 10 MB, total size - not more than 50 MB)

Email
Password