What is a reverse stock split


Consider the following questions:

1.Brandon Components declares a 2-for-1 stock split. What will be the effects of the split, and how should it be recorded?

2. What is a reverse stock split? What would be the effect of a reverse stock split on one million $1 par shares? On the accounting records?

3. Suppose you own 80 shares of Facebook common stock when the company declares a 4% stock dividend. What will you receive as a result?

If possible, please give examples to better understand your response.

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Financial Accounting: What is a reverse stock split
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