Stuck Somewhere?
In a reverse stock split, the number of shares you hold decreases, but the value of each share increases proportionally, so the total value of your holdings stays the same. However, since you now own fewer shares at a higher price, your average price per share increases.
Here's how it works:
This increase in the average price is due to the consolidation of shares, not because of any additional payment. The overall value of your investment remains the same.