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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Reverse Split

Definition:

When a stock is tanking, it risks getting laughed off the exchanges (i.e., being delisted). When this happens, the company can try a reserve split, which means that shares are merged together. If you hold 100 shares at a dollar each, you suddenly own just ten shares—but each is worth $10. It doesn't mean your investment is worth more, but the per-share value has less overall suckage.