GREY:HRZYF - Post by User
Post by
Windyhillon Jan 31, 2016 11:14am
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Post# 24510065
T.HNY Disadvantages of reverse split to Shareholders 11
T.HNY Disadvantages of reverse split to Shareholders 11
If a shareholder owns a 1000 units and the company does a reverse unit split of a 2:1 effectively the company will only pay a dividend on 500 shares. Does the dividend Increase ?
I have a feeling not.
Therefore, in effect, shareholder suffers a 50% dividend reduction.