Reverse Split

A split in which the shareholder’s share count is reduced is called a reverse split (RS). A RS increases the price of the stock and converts each position into proportionately fewer shares. There is no change in the total value. For example, if you own 10 shares of ABC valued at $10 each, and ABC executes a 1 for 10 (1:10) reverse stock split, you will now own 1 share worth $100.