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TeachMeFinance.com - explain stock split-down stock split-down -- the reverse of a stock split. The total number of shares outstanding is lowered by issuing a new stock share to replace each of two or more shares presently in circulation, thus increasing the market value of the new shares. Also called a reverse stock split. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.