Enter the current stock price, the number of shares owned, and the stock split ratio into the calculator to determine the new price and shares owned.

## Reverse Stock Split Formula

The following formula is used to calculate the new price of a stock after a reverse stock split.

NP = OP / SP

• Where NP is the new price per share
• OP is the original price per share
• SP is the reverse stock split ratio

## Reverse Stock Split Definition

A reverse stock split is the reverse splitting, or consolidation, of stocks into fewer stocks to increase the price and decrease available shares.

## Reverse Stock Split Example

How to calculate a reverse stock split?

1. First, determine the reverse split ratio.

For example, a reverse split of 2:1 would mean every 2 shares now equals 1 share.

2. Next, determine the original price.

Determine the original share price.

3. Finally, calculate the new share price.

Calculate the new share price using the formula above.

## FAQ

What is a reverse stock split?

A reverse stock split is the consolidation of stocks into fewer stocks to increase the price and decrease supply or available shares.