What is a Reverse Stock Split?
Monday August 22, 2005
Relatively rare events, a reverse stock split is a way for corporations to avoid being delisted from a major stock exchange. Read more...
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You’ve got a change of quantity here. “Relatively rare eventS, A reverse stock split…” This should be re-written as, “A reverse stock split, a relatively rare event…”
If a company Has a 1 for 50 Reverse Stock Split. And own let say 5000 shares at $.10. What would be the outcome?? Thanks
In the case of 1 for 50 Reverse Stock Split going from $0.10 per share to (0.10 * 50) $5.00 per share, you will find yourself now owning (5,000/50) 100 shares at $5.00 per share for a total value of (100 * 5.00) $500.00 as opposed to the former 5,000 shares at $0.10 per share for a total value of (5,000 * 0.10) $500.00.