Help me does that mean if I buy 1,000 shares of efsh and it has a reverse split of one for 15 that my stock would multiply by 15 per share
11/4/2024 10:24am
If you own 1,000 shares of 1847 Holdings LLC (EFSH) and a reverse stock split of 1-for-15 is implemented, your shares will not multiply by 15 per share. Instead, you will receive one new share for every 15 shares you currently hold.
Here's how it would work:
1. **Reverse Stock Split**: For every 15 shares you own, you will receive 1 new share.
2. **New Share Price**: The new share price will be calculated by dividing the original share price by 15.
3. **Number of Shares**: You will retain the same number of shares, but with the new, higher share price.
For example, if the original share price is $0.50, after the reverse split, the new share price would be $0.0333 per new share (rounded to four decimal places). If you originally owned 1,000 shares, you would now own 1,000/15 ≈ 66.67 new shares, or approximately 67 shares due to rounding.
It's important to note that this process does not create additional value; it merely redistributes the existing value among the remaining shares. The total market capitalization of the company remains the same.