What action by president lincoln most angered the radical reoublicans in congress.
Shares also trade in a secondary market on stock exchanges. A company can increase or decrease the number of shares outstanding without an IPO through stock splits and reverse splits. In all cases, the beneficiary of reverse split activity is the management of the company performing the reverse split. Shareholders may or may not benefit depending on the specifics of the reverse split.
The Definition of a Reverse Stock Split and Why Reverse Stock Splits Are Used. A reverse stock split, though uncommon, is an action taken by a board of directors to change the number of shares outstanding to bring up the quoted value of each share to avoid delisting from a stock exchange or trading as a penny stock. Bart Sadowski / E+ / Getty Images.