reverse split

A reverse split is a corporate action that consolidates existing shares into fewer shares at a higher price per share.

If a company does a 1-for-10 reverse split, shareholders receive one new share for every ten they held, with each share worth ten times as much.

Companies use reverse splits to boost share price—often to meet stock exchange listing requirements or appear more substantial to investors.

The opposite is a stock split, which increases share count while lowering price per share.