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How is Reverse stock split different from a stock split?

A reverse stock split is the exact opposite of a conventional stock split. In such a situation, the company increases the face value of the stock, decreases the number of shares outstanding in the market and increases the stock price relatively. Here also, the market capitalisation of the stock remains the same. Companies do this to meet a certain exchange threshold of a minimum price for listing and to lure investors who invest in costly stocks.

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