GREY:ISOLF - Post by User
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tipit55on Jun 27, 2018 10:59am
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Post# 28236525
Reverse Stock Splits Aren’t All Bad
Reverse Stock Splits Aren’t All Bad Reverse Stock Splits Aren’t All Bad
Sometimes companies decide to reverse split their shares just because they want to offer their shares at reasonable prices to attract new shareholders. There are examples of stocks that have prospered after doing so, including Citigroup (C). Citi probably had the most famous reverse split—a 1 for 10 reverse split in May 2011. Citi became a $40 stock and is now trading at $76.82. The split was billed as “returning value to the shareholders.” The company had already survived the financial meltdown, and had begun paying a dividend, so investors thought it probably couldn’t get any worse. And they were right!
Other companies like AIG (AIG), E*Trade (ETFC), Motorola (MSI) and Priceline.com (PCLN), have endured—and prospered—after a reverse stock split.