reverse split
- noun
- Specialized
:
consolidación de acciones
- The reverse split increased the share price, helping the company meet NASDAQ's minimum requirements.
Examples
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In June, the company announced a 1-for-5 reverse split to improve its stock price.
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Also, watch for reverse splits, which have the opposite effect.
Blog text (17) -
Investors were surprised by the decision to execute a reverse split, reducing the number of shares outstanding.
Synonyms
A company action that combines its shares so each is worth more but the total value stays the same
Antonyms
- Specialized
2
5.5
A change by a company that gives each owner more shares while keeping their total value the same
How Large
- Specialized
15
7.2
- Specialized
Surface Forms
Morphology
The meaning is directly derivable: 'reverse' signals the opposite and 'split' (in the financial sense) means issuing more shares, so 'reverse split' straightforwardly denotes the opposite operation — reducing the number of shares while keeping total equity unchanged. This compositional logic is used in many languages and is therefore transparent to a B1 learner who knows the constituent senses.
Etymology
Reverse split is like a normal split done the other way: imagine putting ten small pieces together to make one larger piece, so there are fewer pieces but the total size stays the same. That's why a reverse split means a company combines many shares into fewer shares so each share is worth more while the 'total value' for owners stays the same.