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reverse stock split
(redirected from Reverse Stock Splits)

   Also found in: Financial 0.01 sec.
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Noun1.reverse stock split - a decrease in the number of outstanding shares of a corporation without changing the shareholders' equity
reduction, step-down, diminution, decrease - the act of decreasing or reducing something


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According to the Proxy, "(t)he Company believes that if the stockholders approve the Reverse Stock Splits, upon effecting one of the Reverse Stock Splits, the holders of the Series A Preferred will continue to convert the Series A Preferred into Common Stock, thus resulting in substantial dilution of the holders of the Common Stock and, based upon the advice of CIBC, increased downward pressure on the market price for the Common Stock.
However, reverse stock splits sometimes result in an imbalance between the stock price before the split and the adjusted price following the split.
 
 
 
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