Stocks Reverse Split
Stocks Reverse Split
2 Stock Splits You Must Know Before Investing
There are two splits that a company could execute. These two are called: a stock split, and a reverse stock split. A company will do this for a number of reasons explained in the article.
Stock splits occur when the demand for a company’s shares decreases or the company just wants to make their shares more affordable. When a split occurs you own are able to buy more shares for the same price. For example, let’s say you own 100 shares of a company that’s trading at $200. If the company calls a 2 for 1 split (you get 2 shares for every 1 shared owned), you will now own 200 shares but valued at $100. The same value but more stock. Splits can occur at any given ratio (3 for 1, 3 for 2, 2 for 1, 4 for 3, etc.).
Just the opposite of a stock split is called a reverse stock split. This happens when a company reduces the number of shares outstanding. Again, if you own $1000 worth of stock before the reverse split, you will own $1000 worth of stock after the reverse split too. For example, if you own 100 shares of a company selling at $10 and they call for a 1 to 5 split, then you will now own only 20 shares of the company but they will be valued at $50 per share. Companies call for reverse splits because they believe their stock price is too low and they want to attract investors.
What is a reverse stock split? Created with ShowMe iPad App
|
|
Kenwood Excelon DNX6960 6.1 In-Dash Double-DIN Navigation DVD Receiver $1,099.00 The DNX6960 is a Full Featured All-in-One Navigation/DVD Entertainment System Featuring:6.1″ Touchscreen with Customizable Start-up Built-in Garmin NavigationEco RouteNAVTEQ Traffic Ready w/ KNA-NT100 High Speed Access to iPhone/iPod Audio and Video Built-in Parrot Bluetooth for Hands-free Cell Phone Operation 3 5V Preamp Outputs2 A/V Inputs (1 dedicated for iPod/iPhone use), 1A/V Ouptput, 1 Backu… |
|
|
Return performance surrounding reverse stock splits: can investors profit?(Report): An article from: Financial Management $9.95 This digital document is an article from Financial Management, published by Financial Management Association on June 22, 2008. The length of the article is 11240 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Return performance su… |
|
|
The effect of Canadian stock splits, stock dividends, and reverse splits on the value of the firm.: An article from: Quarterly Journal of Business and Economics $5.95 This digital document is an article from Quarterly Journal of Business and Economics, published by University of Nebraska-Lincoln on September 22, 1997. The length of the article is 4402 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with a… |
|
|
Business Wire : Boston Life Sciences Receives Delisting Notice from Nasdaq; Reverse stock split recently completed in an effort to regain compliance. $5.95 … |
