Reverse Splits
Fewer shares at a higher price — usually a company climbing back over an exchange's minimum-price bar.
Corporate EventsBeginner 3 min read· Lesson 11 of 11 in Stock Market Basics
Mechanics and signal
A 1-for-10 reverse split converts ten $0.50 shares into one $5 share — value unchanged. It's most often done to cure listing-requirement violations (e.g. NYSE/NASDAQ $1 minimums) after a long decline, which is why reverse splits statistically precede further underperformance: the split is the symptom, the sick business is the cause.