Definitions
In plain terms
In a one-for-ten reverse split, ten old shares become one new share, subject to how fractions are handled.
Technical
The event requires ratio direction, affected security, dates, fractional cash or rounding, identifiers, price and share adjustments, and source evidence.
Scope
It can affect listing and liquidity conditions but is not by itself an economic return.
Examples
- A governed calculation records reverse stock split with its exact basis, effective time, source, and units.
Common misconceptions
- Reverse Stock Split does not have one universal treatment without the applicable methodology, event terms, and data context.
Concept relationships
Where this concept is used
Evidence and governance
- Corporate Actions by Public Companies: What You Should Know Financial Industry Regulatory Authority · official platform documentation
Supports: preferred label, short definition, technical definition
Limits: General education does not define every event field, tax result, exchange rule, data-provider adjustment, or index treatment.
- Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract
Supports: variant distinction
Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.
- Reviewed by
- fintech-builder-owner-approved
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- published