WeWork announces 1-for-40 reverse stock split to retain New York listing::US office space group recently warned it faced ‘substantial doubt’ about ability to continue as a going concern

  • @thrawn
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    71 year ago

    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.

    • @delicious_tvarog
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      11 year ago

      Merge implies more than one company merging together to become one, which I’m guessing is why we have the term “reverse split”