© 2016 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Reverse Stock Split


Sort of like a stock regeneration. Instead of 1 share becoming 2 (like in a stock split), 2 shares become 1. Your investment is worth the same overall, but the window-dressing makes it all look more impressive.   


If you had 20 shares at $10 before the reverse, you'll have 10 shares worth $20 after, but your investment is still worth $200.