stock split and reverse split



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what is the difference between stock split and reverse split?

1 Answer(s)


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when there is a stock split, for example,, 5:1 stock split i.e. it means for every 1 share, the owner of the shares will be issued 5 shares. In case of reverse split, the ratio is opposite, for example, in case of 1:5 split, for every 5 shares , owner will be issued 1 share.