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When a security splits, you're given additional shares.
A reverse split is a reduction in the number of shares of stock. The opp= osite of a stock split, a reverse split means that shareholders will hold f= ewer shares, although the value of their investment remains the same. Compa= nies use various formulas to determine how much stock each shareholder shou= ld have, such as 1-for-2 or 1-for-5. If you own 100 shares of the stock YUP= , valued at $5 per share, a 1-for-2 split means you will have 50 shares val= ued at $10 a share. In each case your stake is worth $500. Companies often = announce reverse stock splits to make their stock more attractive to instit= utional investors. Some funds have prohibitions against buying stocks that = are priced too low, which are considered very speculative. Stock prices oft= en sag for some time after the announcement of a reverse split.
If this is a reverse split, for example, 1-for-2, you would end up with = fewer shares rather than more, and each share would have a higher ending pr= ice. For example: For a 1-for-2 reverse stock split, enter 1 in the New Sha= res field and 2 in the Old Shares field.
Use the Stock Split transaction type to record split or reverse split of= any stock that you are holding.