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This is a corporate action where a company reduces the number of its outstanding shares and simultaneously increases the price of each share proportionally. For example, in a 1-for-10 reverse split, if you held 100 shares priced at $1 each, after the split, you would hold 10 shares priced at $10 each. The overall value of your holdings doesn’t change immediately because of the split, but the per-share market price increases. Companies might undertake a reverse split to boost their stock price and avoid being delisted from stock exchanges that have minimum share price requirements.
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