Investopedia

Continue to Site »

Reverse/Forward Stock Split

Filed Under »
Dictionary Says

Definition of 'Reverse/Forward Stock Split'

A stock split strategy that includes the use of a reverse stock split followed by a forward stock split. A reverse/forward stock split is usually used by companies to cash out shareholders with a less-than-certain amount of shares. This is believed to cut administrative costs by reducing the number of shareholders who require mailed proxies and other documents.
Investopedia Says

Investopedia explains 'Reverse/Forward Stock Split'

For example, if a company declares a reverse/forward stock split, it could start by exchanging one share for 100 shares that the investor holds. Investors with fewer than 100 shares would not be able to do the split and would therefore be cashed out. The company would then do a forward stock split for 100 for 1, which will bring shareholders that were not cashed out to their original number of shares.

Articles Of Interest

  1.

    The Power Of Dividend Growth

    Dividends may not seem exciting, but they can certainly be lucrative. Learn more here!

  2. Introduction to Types of Trading: Fundamental Traders

    Learn about the different traders and explore in detail the broader approach that focuses on company-specific events.

  3. What Are Corporate Actions?

    Be a savvy investor - learn how corporate actions affect you as a shareholder.

  4. Understanding Stock Splits

    We explain what they are, the thinking behind them as well as their results.

  5. How Now, Dow? What Moves The DJIA?

    Find out how this index tracks market movements - and where it falls short.

  6. The Path To Becoming A CEO

    Think you have what it takes to be chief executive? Find out what those at the top have in common.

  7. Wall Street’s Glass Ceiling

    It’s tough to boast that there are more female CEOs than ever before when they make up only 4.2% of the total.

  8. Is Lululemon's Chief Product Officer to Blame For Sheer Debacle?

    Lululemon announced April 3 that Chief Product Officer Sheree Waterson was leaving the company as of April 15. Assigning blame might appease the board, but it shouldn't do anything for investors.

  9. Schulze Plus Joly Equals Success?

    Best Buy founder Richard Schulze announced March 25 that he was dropping his bid for the company and rejoining the board as Chairman Emeritus. Two other former board members are rejoining as ...

  10. Is it Time To See Through Lululemon?

    Lululemon has pulled 17% of its women's bottoms due to a quality problem. It turns out that its latest batch of black luon yoga pants, which combine Lycra spandex with nylon, were virtually see ...
comments powered by Disqus
Marketplace
Hot Definitions

  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center