The Rise of Reverse Splits
By Dave Mabe
Until I created the free Massive/Polygon Backfill tool, I didn't pay that much attention to stock splits.
But now that I have the split data at my fingertips, I've been exploring it.
And I'm... surprised.
Over the last 10 years, there have been 4,545 splits across 2,911 stocks.
That's way more than I would have guessed.
What's even more surprising is that the vast majority of them are reverse splits: over 77%.
And the number of reverse splits is increasing... dramatically.
This year, over 88% of splits are reverse.
Here's a chart showing the number of splits over the last 10 years, broken down by forward vs. reverse splits.
Some of this data is crazy.
For example, can you guess what the most extreme reverse split ratio was over this period?
I'll be posting some of the more interesting things I come across over the next several days.
-Dave
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