What is a reverse stock split, and does it make your shares worth more?

A reverse stock split merges a company's shares into fewer, higher-priced ones. In a 1-for-10 reverse split, every 10 shares you own become 1 share, so 10,000 shares become 1,000 (that's the SEC's own example on Investor.gov). The price per share rises by roughly the same ratio, so the total value of what you own doesn't change at the moment of the split. A regular stock split works the other way: more shares at a lower price each.

A real one is happening right now. On Oct 27, Nasdaq-listed Solowin Holdings (AXG) announced a 1-for-200 reverse split that takes effect when the US market opens on Oct 29. Its Class A shares will shrink from about 201.5 million to about 1 million, and the company itself says it can't promise the new price will stay at 200 times the old one. Benzinga reported the stock fell more than 25% on Tuesday after the news and traded around 3 cents in premarket on Wednesday. One common reason companies do this: Nasdaq requires a minimum bid price of $1 per share to stay listed, and a stock that closes below $1 for 30 business days in a row gets a warning and a deadline to fix it.

The key idea: a reverse split changes the share count and the price, not the size of the company, and the SEC notes investors can lose money as prices swing afterward. It often follows a long price slide, so it's worth reading why a company is doing it. Have you ever seen a chart where a price suddenly looked 10 or 100 times higher overnight? Ask away below, there are no silly questions here.

Sources: Solowin Holdings press release via Nasdaq and GlobeNewswire (Oct 27, 2026); Benzinga premarket movers (Oct 28, 2026); Investor.gov "Reverse Stock Splits"; Nasdaq Listing Rules 5550 and 5810.