Why Are Reverse Stock Splits So Rare?
These days, the standard (or "forward") stock split garners a lot of attention. In fact, some of the country's most prominent companies have enacted such splits in recent times, including Tesla, Apple, and Amazon.
By contrast, there have been relatively few reverse stock splits, even at a time when standard ones are occurring on a regular basis. Here's a brief look at why they are such elusive creatures.
Before looking at the "why" of reverse stock split elusiveness, let's first back up and take care of the "what" of this piece of financial engineering.
Source Fool.com
