WeWork announces 1-for-40 reverse stock split to retain New York listing
thrawn @ thrawn @lemmy.world Posts 3Comments 283Joined 2 yr. ago
thrawn @ thrawn @lemmy.world
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It’s because broad adoption of the existing term -> fewer misunderstandings if you just use a variation. Anyone with even passing knowledge of stocks has heard of splitting. The inverse is so comparatively rare that the term wouldn’t be widespread enough to be as immediately understandable as the (admittedly dumb sounding) reverse split.
In part because stock merge could feasibly be multiple things. Stock share merge is more specific, but that’s three words that don’t flow very well rhythmically. A reverse split can only be one thing and is the most layman friendly.