Reverse Stock Split
A corporate action that combines shares into fewer, higher-priced shares without changing the total value of a holding.
What it is
A reverse stock split consolidates existing shares into fewer shares, for example one new share for every ten old ones in a 1-for-10 reverse split. The price per share rises in proportion, so the total value of a holding is unchanged immediately after. It is the opposite of a forward stock split.
Why it matters
Companies often do reverse splits to push a low share price back above an exchange's minimum listing threshold and avoid delisting. The pitfall is that a reverse split frequently signals a struggling business, and the higher price alone fixes nothing about the underlying fundamentals.
How it's calculated
Apply the reverse ratio: divide the share count by the ratio and multiply the price by the same ratio. A 1-for-5 reverse split leaves one-fifth as many shares at five times the price.
How Quintarthai uses it
Reverse splits appear in the Stock Splits tab on a company's deep-analysis page, and Quinn flags delisting risk for low-priced names in the app.