What is a reverse stock split?
As you can see in the visual below, there is no impact to retained earnings and no impact on overall stockholders’ equity.
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What is a stock split?
A stock split will increase the number of shares outstanding that a company has and will divide the par value by its split amount. Stock splits will not require a journal entry, but they will require a unique method of computation. The visual below illustrates the calculation to make to the number of outstanding shares. […]