Reversed Split
This is the process of aggregating several cheap shares into one more expensive one of the same company, as a result of which the total value does not change.
Example: On 30.04, you had 1000 AMD shares at a price of $1 per share, i.e., the value per $1000, the company announced that from 01.05, a 1 for 20 stock split will take place.
This means that on 1 May, at the opening of the market, you'll only have 50 (1000/20) AMD shares at a price of $20 per share. In this case, the total cost will remain the same at $1000.
*If receiving fractional shares, the client receives the cash equivalent of these shares.
This is the process of aggregating several cheap shares into one more expensive one of the same company, as a result of which the total value does not change.
Example: On 30.04, you had 1000 AMD shares at a price of $1 per share, i.e., the value per $1000, the company announced that from 01.05, a 1 for 20 stock split will take place.
This means that on 1 May, at the opening of the market, you'll only have 50 (1000/20) AMD shares at a price of $20 per share. In this case, the total cost will remain the same at $1000.
*If receiving fractional shares, the client receives the cash equivalent of these shares.