What it is
In a 1-for-10 reverse split, every ten shares become one. The share count falls to a tenth and the price per share rises tenfold, while market value and each holder's stake stay the same.
Why companies do it
Very low share prices trade in coarse tick sizes and look like penny stocks. On Nasdaq, a stock that stays below $1 risks breaching continued-listing rules, so reverse splits are a common fix.
What to keep in mind
Check the ratio, record date and new listing date. In Korea trading can be suspended for days or weeks during the process. Reverse splits are often followed by share or convertible bond offerings, so watch funding filings too.
This explanation is general information, not investment advice. Rules reflect September 2026 and may change; check official exchange and broker notices.