reverse split > define

noun

• A decrease in the number of outstanding shares of a corporation without changing the shareholders' equity.
  • synonyms: reverse stock split, split down

Occurs when a corporation reduces the number of shares outstanding by reorganizing its capitalization structure. Here, fewer shares may be an effort to have a higher unit share price. One motivation for this is that some exchanges have listing/delisting criteria of which share price is a factor. The proportional ownership of the shareholders does not change but the shares held do change.