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2 Cards in this Set
- Front
- Back
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Stock split
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Increase # of outstanding shares but does NOT change the proportionate equity ownership of SH.
Done to: 1.Increase marketability by reducing the stock price 2.Investors will receive a new certificate for addtnl shares 3.The par value of the stock price decreases propotionately to the split 4.Shareholders must vote to approve stock splits 3:2-Big number is ALWAYS first |
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Reverse stock split
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Known as stock consolidation,decreases the # of outstanding shares and increases the market price
-Can be a sign of trouble -Stock price increases proportionately to the reverse split. 2:3-Big number is ALWAYS last |
