Question: Reverse stock split. If a company declares a 2 2 - for - 5 5 reverse stock split, the price before the split is $
Reverse stock split. If a company declares a for reverse stock split, the price before the split is $ and the price after the split is $ show that a current shareholder is no better off after the split. Question content area bottom Part Current shareholders are no better off after the for reverse split because if they owned one share at $ per share before the split, they would then own of a share worth $ per share immediately after the split.
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