Why Would a Company Execute a Reverse Stock Split?
Companies will typically execute a reverse stock split for one of the following three reasons: – Increase their share price to avoid being delisted from an exchange [Learn What Happens When the NYSE Delists Stocks.] – Increase their share price to avoid being removed from a stock index – Increase their share price to avoid the “low-quality” stigma that is associated with penny stocks Moreā¦