When does a reverse stock split change the stock's trading price
When does a reverse stock split change the stock's trading price
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Peter · External communityPost link
External question — Personal Finance Stack Exchange
Author: Peter
Original post: https://money.stackexchange.com/questions/124023
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I own 4730 shares of TBLT stock. A few days ago, a 1:10 reverse stock split was approved by the board of directors with an effective date of April 15, 2020. Does the split take effect before the start of trading on the effective date or after the trading on the effective date ends? If I had sold my stock earlier today, the effective date, before the end of trading, when the stock was trading at $1.43/share, would I have received $6,763.90 for the trade, or would that have been adjusted to $676.39 to account for the split?
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Bob Baerker · External communityPost link
External answer — Personal Finance Stack Exchange
Author: Bob Baerker
Original post: https://money.stackexchange.com/a/124027
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A stock split whether traditional or reverse does not affect the value of the position.
For example, if you own 5,000 shares of a $1 stock at the close before the stock split then it is worth $5k.
If a 1:10 reverse split occurs, before trading resumes the next morning you will own 500 shares of a $10 stock which is still worth $5k.
It matters not when you sell the stock. The only thing that matters is if share price rises or drops.
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: Peter Source score (net votes, not local likes): 0 Original post: https://money.stackexchange.com/questions/124023 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I own 4730 shares of TBLT stock. A few days ago, a 1:10 reverse stock split was approved by the board of directors with an effective date of April 15, 2020. Does the split take effect before the start of trading on the effective date or after the trading on the effective date ends? If I had sold my stock earlier today, the effective date, before the end of trading, when the stock was trading at $1.43/share, would I have received $6,763.90 for the trade, or would that have been adjusted to $676.39 to account for the split?
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