A 1-for-10 reverse stock split means that the shares will be consolidated at a 1:10 ratio. Every ten shares will be combined into one share with equal value to those ten shares. For example, a company has 1,000 shares in circulation valued at $1,000 ($1 per share) and decides to do a 1-for-10 reverse stock split. After the reverse stock split, the company now has 100 shares in circulation still valued at $1,000, but each share is now worth $10.