Reverse split
A reverse split cuts the share count and raises the price per share by a ratio. The company's value does not change from the ratio alone. Not advice.
The ratio
A reverse split exchanges several old shares for one new share. A 1-for-10 ratio divides the share count by ten and multiplies the price by ten, before rounding.
Market value does not change from that arithmetic alone. The higher price is not the company rising. It is the same whole, cut into fewer parts.
What gets adjusted
The filing states the ratio and the date. Warrants, convertibles, and exercise prices are often adjusted the same way. You read the adjustment. You do not assume it.
After the split, old price series are usually rewritten. Comparing an unadjusted price from before with the price after mixes two scales.
This is not financial advice.
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