A reverse split in the Portfolio account is the process of combining multiple company shares into one, with their value also being combined.
Such consolidation is often done for convenience, merging small fractional parts into one unit that is easier to manage.
Example
In a reverse split of 1,000 AMD shares priced at $1 each, at a ratio of 1000:1, you receive 1 AMD share worth $1,000. For the AMD shareholder, only the price and quantity of shares in the portfolio will change, while the total portfolio value remains the same.
Before: 1,000 shares worth $1 each
After: 1 share worth $1,000*
*If fractional shares are formed below the minimum allowed volume, a shareholder receives their cash equivalent. The minimum volume for each instrument is specified in the Instrument Specifications.