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In a reverse split, what happens to odd lots?
There are two reasons to do a reverse split.  Those partial shares will then be turned into cash and returned to the investors. For large institutional investors such as mutual funds or pension funds it results in only a small amount of cash because the fund has merged all the investors shares together. If the company is trying to meet the minimum price level of the exchange they have little choice. If they don't do the reverse split they will be delisted. If the goal is to reduce the number of investors they are using one of the methods of going private: A publicly held company may deregister its equity securities when they   are held by less than 300 shareholders of record or less than 500   shareholders of record, where the company does not have significant   assets. Depending on the facts and circumstances, the company may no   longer be required to file periodic reports with the SEC once the   number of shareholders of record drops below the above thresholds. A number of kinds of transactions can result in a company going   private, including: