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

  • 0xb@lemmy.world
    link
    fedilink
    English
    arrow-up
    6
    ·
    1 year ago

    finance is full of that kind of terms that would even be goofy if they weren’t that misleading.

    when the economy contracts very often is called ‘negative growth’.

    • thrawn@lemmy.world
      link
      fedilink
      English
      arrow-up
      6
      ·
      1 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@lemmy.world
        link
        fedilink
        English
        arrow-up
        1
        ·
        1 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”