Stock split and reverse split

A stock split divides each share into several, multiplying the number of shares and reducing the price in the same proportion. A reverse split does the opposite: it consolidates several shares into one and raises the price. Neither changes the value of the holding or of the company. They matter for what they break: any historical series or per-share figure not adjusted for splits produces meaningless comparisons, and an EPS from ten years ago left uncorrected can be wrong by a factor of four.

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Definition for informational purposes. It is not financial advice nor a recommendation to buy or sell.