The Effects of Stock Splits. The outcome would be the same if the company chose to split the stock 6:5, which would mean that shareholders would ultimately possess six shares of stock for every five they presently own.
outstanding after the split, 53,000 shares outstanding that sell for $110 per share.
What Does reverse split mean in Stocks?
- Each outstanding share of a corporation is reduced to a fraction of a share when a reverse stock split is completed. For instance, if a business announces a one-for-ten reverse stock split, every ten of your shares will be changed into one share.
- The Effects of Stock Splits. The outcome would be the same if the company chose to split the stock 6:5, which would mean that shareholders would ultimately possess six shares of stock for every five they presently own.
- The amount of the dividend is also decreased as a result of the split if this company pays equity dividends. Therefore, in theory, there is no practical benefit to purchasing shares before or after the split.
To learn more about : Stock Splits
Ref : https://brainly.com/question/14247504
#SPJ1
