All else constant, a reverse stock split:

Name: All else constant, a reverse stock split:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A reverse stock split reduces the number of shares outstanding, which typically increases the market price per share as the value of the company is now divided among fewer shares. This does not inherently change the book value, total market value of the firm, or earnings per share, except insofar as the per-share values are recalculated based on the new number of shares.

All Else Constant, a Reverse Stock Split