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in this video were going to talk about the difference between a stock split and a reverse stock split so what happens when a company undergoes a stock split or also known as a forward stock split in a ford stock split the number of outstanding shares increases in a reverse stock split the number of outstanding shares decreases in a forward stock split you may see numbers such as two for one or even three for one so what does that mean in a two for one stock split that means that as an investor you will receive two shares for every one share that you own thus the number of shares go up in a three for one stock split you will receive three shares for every one share you own now in a reverse stock split youll see numbers such as one for four notice that the first number is less than the second number in a reverse stock split so a one for four reverse stock split means that as an investor you will receive one share for every four shares that you own so the number of shares should go dow
