A reverse stock split will

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A reverse stock split involves reducing the number of outstanding shares while increasing the price per share. This means that the total market value of the firm's equity remains the same, but each individual share's value is higher. A reverse stock split is when a company reduces its total number of outstanding shares by combining multiple existing shares into a single share. This results in a higher market price per share, as the same company value is now spread out over fewer shares. For example, in a 1-for-5 reverse stock split, five existing shares are combined into one new share, and the market price per share would be five times higher than before the split. Therefore, a reverse stock split will increase the market price per share of the firm's stock.

A Reverse Stock Split Will