the reverse split with stocks

Question

the reverse split with stocks

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Answer 1

Split is when one stock is split into two (or more) stocks. For instance, if you had 10 stocks each worth $100 (totaling $1000) and it split with 1:4 split, you would now have 40 stocks each worth $25 (and still totaling $1000).

Reverse split is the same thing, but instead of one stock splitting up to many, you do the opposite. Say you have 10 stocks each worth $100, and now the stock has a reverse split of 10:1. After this, you now have just one stock with worth of $1000.

The total worth doesn’t change when a stock is split (reversely).