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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Reverse Stock Split

Definition:

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.   

Example

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.