A Stock Split is a type of corporate action that increases the number of shares outstanding by issuing more shares to existing shareholders. A Stock Split increase the number of outstanding shares and proportionally reduces the share price, so the company’s market capitalization remains unchanged.
A Reverse Stock Split is a type of corporate action that consolidates the number of outstanding shares into fewer (higher-priced) shares. It is the opposite of a Stock Split. A Reverse Stock Split is also known as stock consolidation, stock merge, or share rollback.