Corporate Actions

Reverse Stock Split

Definition

What is Reverse Stock Split?

A reduction in the number of shares accompanied by a proportional increase in price per share.

Example in practice

A one-for-ten reverse split converts 1,000 shares at ₦1 into 100 shares at roughly ₦10.

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An offer allowing existing shareholders to buy additional shares, usually in proportion to their holdings.

An issue of additional shares to existing shareholders without a cash payment.

An increase in the number of shares accompanied by a proportional reduction in price per share, leaving total value initially unchanged.

A vote cast by another person or electronically on behalf of a shareholder.

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