A reverse stock split is a corporate action in which a company reduces the number of outstanding shares by consolidating them into a smaller number of shares. This is usually done to increase the price of the shares, making them more attractive to investors. The term reverse stock split is sometimes referred to as a stock consolidation or a stock reverse split. In some cases, the term stock reverse split is also used interchangeably with the words share consolidation, reverse share split, and reverse split. Regardless of the term used, a reverse stock split is a strategy that companies use to manage their outstanding shares and influence the stock value.