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Glossary · PSX term

Reverse split.

A reverse split combines several shares into one, raising the price per share without changing total value.

Definition

Companies use reverse splits to lift a low share price, often to meet listing requirements or improve perception. The share count falls and price rises proportionally, so your holding value is unchanged.

Worked example

In a 1-for-5 reverse split, five Rs. 4 shares become one Rs. 20 share, and 500 shares become 100 shares.

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