What Is a Reverse Stock Split?
A reverse split consolidates shares: 1-for-10 means ten old shares become one new share. The mechanical reference price rises by the inverse factor. Actual trading prices can change, and fees or fractional-share settlement can affect an account.
How to Read the Calculator
- Enter a ticker and a hypothetical pre-split share count. The ticker is sent to Pineify data endpoints; share math runs on this page.
- The tool requests available FMP split records and keeps valid ratios with fewer new shares than old shares.
- For each event, it searches ten calendar days before and after the date for unadjusted end-of-day prices. It displays the closest earlier close and the first close on or after the event, with their dates.
- Each card applies the same input share count independently. It does not reconstruct actual trades or chain multiple splits together.
Separate Split Arithmetic from Investment Return
At a theoretical 1-for-10 split, 1,000 shares at 2 currency units become 100 shares at 20: both equal 2,000. That identity assumes a proportionate reference-price adjustment. Different observed closing prices include market movement and are not a guaranteed settlement value.
Using split-adjusted historical prices with the original share count would distort this comparison. This tool uses historical prices without split adjustment, so the observed prices remain on each trading day's share basis.
Fractional Entitlements and Options
105 shares in a 1-for-10 split imply 10.5 shares before settlement. The calculator preserves that fraction. The company may specify cash-in-lieu or another treatment; verify the announcement and your broker statement rather than assuming cash equals the displayed daily close.
Options require their own OCC adjustment memo. A reverse split generally changes the deliverable while aggregate exercise consideration stays unchanged; it does not universally multiply the strike or change the number of contracts. This stock calculator does not value adjusted options.
Why Companies Consolidate Shares
A company may seek a higher per-share quotation, including for listing compliance or investor eligibility. Consolidation alone does not improve operations or establish investment quality. Read the issuer's stated reason and current exchange requirements; a split does not guarantee continued listing.
References: SEC Investor.gov reverse splits, OIC option adjustments, and FMP unadjusted historical prices.