Reverse stock split

Reverse stock split reduces the total number of outstanding shares issued by the company. In a reverse split, a shareholder that owns 10 shares that has a total value of $100 will be reduced to just 5 shares but the value would be the same at $100. Basically, the price per share of the stock will change from being $10 a share to $20. On a larger perspective, the market value of the entire company remains the same however, its stock price would appear to be pricey in the eyes of an untrained investor.

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