A reverse stock split is a type ofcorporate actionthat consolidates the number of existing shares of stock into fewer (and, importantly, higher-priced) shares. A reverse stock split divides the existing total quantity of shares by a number, such as five or 10, which would then be called a...
Some reverse mergers come with unseen circumstances, such asliabilitylawsuits and sloppy record keeping. Reverse stock splitsare very common with reverse mergers and can significantly reduce the number of shares owned by stockholders. Manychief executive officersof private companies have little or no ex...