Reverse stock splits are often used by companies to increase their share price to comply with stock exchange listing requirements or to make the stock more appealing to institutional investors who may avoid lower-priced stocks. While the split does not change the company's market capitalization, it can sometimes be viewed positively if it leads to compliance with exchange rules or changes investor perception. However, it can also be seen as a sign of trouble if the company is struggling to maintain its share price organically.