REVERSE STOCK SPLIT

A proportionate decrease in the number of shares , but not the total value of shares of stock held by shareholders . Shareholders maintain the same percentage of equity as before the split . For example, a 1-for-3 split would result in stockholders owning 1 share for every 3 shares owned before the split. After the reverse split, the firm's stock price is, in this example, worth three times the pre-reverse split price. A firm generally institutes a reverse split to boost its stock's market price. Some think this supposedly attracts investors.