| Reverse Split |
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A reduction in the number of a corporation's shares outstanding that increases the par value of its stock or its earnings per share. The market value of the total number of shares remains the same.
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This
is usually a bad sign if a company is forced to reverse split, they
do it to make their stock look more valued but fundamentally the company
may be in trouble. For example a 1:2 reverse split means you get half
as many shares but at twice the price. |
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