© 2014 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Reverse Split

Definition:

When a stock is sucking so bad, where it may be in risk of trading below a dollar and getting delisted, it reverse splits like 1 for 10 so that 100 million shares outstanding at a dollar each becomes 10 million shares outstanding at 10 dollars each.

Advertisement