What is a Reverse Stock Split? What is a Reverse Stock Split? A reverse stock split is a corporate action in which a company reduces the number of its outstanding shares while increasing the price per share proportionally so that the overall value for shareholders remains unchanged. Kiran Shroff / Thursday, January 16, 2025 / Article rating: 5.0 In simple terms, it’s the opposite of a regular stock split. Instead of receiving more shares at a lower price, shareholders end up with fewer shares at a higher price.