Reverse Stock Split A pro-rata reduction in the number of shares of capital stock of a company that are outstanding. Typically requires approval of a majority of shareholders. Often used to increase per-share price, or to make more authorized shares available in order to complete a reverse merger. A reduction in the number of a corporation's shares outstanding that increases the par value of its stock or its earnings per share. The market value of the total number of shares (market capitalization) remains the same.
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