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.
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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?
- First, determine the reverse split ratio.
For example, a reverse split of 2:1 would mean every 2 shares now equals 1 share.
- Next, determine the original price.
Determine the original share price.
- Finally, calculate the new share price.
Calculate the new share price using the formula above.
A reverse stock split is the consolidation of stocks into fewer stocks to increase the price and decrease supply or available shares.