An example of a 1:2 split would mean a shareholder with 100 shares at $10 per share prior to the reverse split would have 50 shares worth $20 per share post-split. Companies will often do this when they feel the share price has fallen too low and
When a split occurs, the company will announce the split and indicate that it only applies to shareholders of a specific date. Shortly after the date, shareholders will either receive their additional shares while noticing a price drop, or they will see their number of shares decrease while the price gets boosted.
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