Capital Markets | Securities Regulation

Reverse Stock Splits for Non-Lawyers

How companies fix their stock prices with reverse splits

Kemal M. Lepschoque, LL.M.
Friendly Legal
Published in
6 min readMay 10, 2024

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A reverse stock split is a corporate action where a company decreases the number of its existing shares to increase the per-share market price. This is opposite to a regular stock split, which increases the number of shares and decreases the price without affecting the market capitalization of the company.

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Kemal M. Lepschoque, LL.M.
Friendly Legal

Lawyer | Traveller | Polyglot | 25 x Boosted ✨ adept at simplifying complex juridical concepts into human-friendly language & 60+ countries visited