What Is a Reverse/Forward Stock Split?
A reverse/forward stock split is a stock split strategy used by companies to eliminate shareholders that hold fewer than a specified number of shares. A reverse/forward stock split uses a reverse stock split followed by a forward stock split.
How a Reverse/Forward Stock Split Works
A reverse split reduces the overall number of shares a shareholder owns, causing some shareholders who hold less than the minimum required by the split to be cashed out. The forward stock split increases the overall number of shares a shareholder owns. A reverse/forward stock split is usually used by companies to cash out shareholders who hold less than a specified amount of shares.