ACME Inc.has decided on a 4-for-1 REVERSE stock split.If the firm currently has 800,000 shares outstanding,how many shares will be outstanding after the stock split?

Question

Quizplus · Accepted Answer

In a 4-for-1 reverse stock split, for every 4 shares an investor holds, they are consolidated into 1 share. Therefore, if ACME Inc. has 800,000 shares outstanding, after the reverse split, there will be 800,000 / 4 = 200,000 shares outstanding.

ACME IncHas Decided on a 4-For-1 REVERSE Stock Split