Reverse Split

 

 

 

A Company can decide to decrease the amount of its outstanding shares while at the same time increasing the nominal share price proportionally.

 

Example 1: a 1 for 4 reverse stock split

BEFORE THE REVERSE SPLIT:

Amount of outstanding shares: 1,000,000

Nominal value per share: EUR 0.50. 

Total nominal value: 1,000,000 x EUR 0.50 = EUR 500,000

AFTER THE REVERSE SPLIT

Amount of outstanding shares: 250,000

Nominal value per share: EUR 2.00

Total nominal value: 250,000 x EUR 2.00 = EUR 500,000

 

                                                            

 

Example 2: What Would you prefer?

 

 1 share's worth after reverse split

 

OR

 

  10 share's worth before reverse split

   

 

 

 

 

 

 

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