**What is a reverse stock split? Many companies have followed suit within a month.**
Yesterday, Banzai International announced a 1:10 Reverse split (effective July 8th). In simple terms, this means: your 10 shares will be consolidated into 1 share, and the stock price will rise from $0.50 to around $5, while the ownership ratio remains unchanged.
**Why do it this way?**
- Avoid being delisted by Nasdaq (most common reason)
- Looks more "serious", attracting institutional investors
- Reduce the negative perception of stock prices being too low
This is not new. Since the beginning of this year,
View OriginalYesterday, Banzai International announced a 1:10 Reverse split (effective July 8th). In simple terms, this means: your 10 shares will be consolidated into 1 share, and the stock price will rise from $0.50 to around $5, while the ownership ratio remains unchanged.
**Why do it this way?**
- Avoid being delisted by Nasdaq (most common reason)
- Looks more "serious", attracting institutional investors
- Reduce the negative perception of stock prices being too low
This is not new. Since the beginning of this year,