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.
In a reverse split, the number of shares declines. A two to one reverse split would take the previous share count of 1 million down to half a million, for example. Whether the split is of the conventional variety or a reverse one, there is no effect on the profits or the cash position of the firm.