$PTX my hunch is there's a deal with a stock in th
Post# of 22755
Posted On: 10/13/2016 12:48:02 PM
$PTX my hunch is there's a deal with a stock in the NYSE.
again just a hunch. I could be completely wrong do your own DD.
Share Price and Dividends
Reverse splits result in a higher share price. For a stock worth just a dollar or two, this may be necessary in order to meet listing requirements on certain exchanges. As of 2013, for example, the New York Stock Exchange required a minimum share price of $4, along with a minimum share float and minimum market capitalization. A company that wants to attain status on the NYSE "Big Board" and get interest from institutional investors may reverse-split its shares to meet these guidelines. In addition, companies that pay dividends simply adjust the dividend to reflect the new, lower number of shares: a $.25-per-share dividend paid by a company that does a 1:3 reverse split becomes a $.75 dividend: three times the old payout.
Mergers and Acquisitions
A company may announce a reverse stock split in order to carry out a merger with or acquisition of another company. A company's articles of incorporation limit the number of shares the company can issue; a common practice of company buyouts is to issue new shares of the acquiring (or new) company to the shareholders of the company being acquired or merged out of existence. If the buyout or merger means the company would break that limit, it may carry out a reverse split to reduce the number of shares it has on the market. An example of this was Duke Energy announcing a one-for-three reverse split for its 2012 merger with Progress Energy. The reverse split allowed Duke to keep within its legal limit of 2 billion shares outstanding.
again just a hunch. I could be completely wrong do your own DD.
Share Price and Dividends
Reverse splits result in a higher share price. For a stock worth just a dollar or two, this may be necessary in order to meet listing requirements on certain exchanges. As of 2013, for example, the New York Stock Exchange required a minimum share price of $4, along with a minimum share float and minimum market capitalization. A company that wants to attain status on the NYSE "Big Board" and get interest from institutional investors may reverse-split its shares to meet these guidelines. In addition, companies that pay dividends simply adjust the dividend to reflect the new, lower number of shares: a $.25-per-share dividend paid by a company that does a 1:3 reverse split becomes a $.75 dividend: three times the old payout.
Mergers and Acquisitions
A company may announce a reverse stock split in order to carry out a merger with or acquisition of another company. A company's articles of incorporation limit the number of shares the company can issue; a common practice of company buyouts is to issue new shares of the acquiring (or new) company to the shareholders of the company being acquired or merged out of existence. If the buyout or merger means the company would break that limit, it may carry out a reverse split to reduce the number of shares it has on the market. An example of this was Duke Energy announcing a one-for-three reverse split for its 2012 merger with Progress Energy. The reverse split allowed Duke to keep within its legal limit of 2 billion shares outstanding.
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