If the company sells preferred shares there are more shares outstanding to which the value of the company needs to be divided. A sale of preferred shares will reduce the value of an individual common share.
If the company sells treasury shares there are more shares outstanding to which the value of the company needs to be divided. A sale of treasury shares will reduce the value of an individual common share.
In a stock split each share is split into some number of more shares. For example, in a 2-for-1 split, each share that is held by someone becomes two shares. However, the market value of each of those shares is half what it had been before the split. A stock split reduces the market value of the common shares.
In a reverse stock split the company is reducing the number of shares outstanding. For example, in a 1-for-2 reverse stock split, every two shares that are held by someone become one share. This one share, however, has a value that is twice as high as an individual share before the reverse stock split. Therefore, a reverse stock split will increase the market value of a common share.
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