This charge may decrease or be eliminated as shares are held for longer time periods. A price movement in the opposite direction of the previous trend. Determined by dividing net income for the past 12 months by total assets. Result is shown as a percentage. Result is shown as a percentage.
Shareholders maintain the same percentage of equity as before the split.
A firm generally institutes a reverse split to boost its stock's market price and attract investors. Shareholders who do not exercise these rights are usually diluted by the offering. Rights are transferable, allowing the holder to sell them on the open market to others who may wish to exercise them.