oh yeah, that citigroup reverse split is this week…

Just realized that Citigroup‘s reverse split is this week.  An important event in that Citi makes up about 10% of all NYSE trading volume when last I looked.  Now that it will be split one-for-ten, there will be a need for a “mental adjustment” of sorts.

I’m also long some for client accounts.

Anyway, a helpful reminder from my custodian firm TD Ameritrade Institutional:

Dear Valued Advisor:

In our effort to always keep you informed about matters involving your clients’ accounts, we want you to know that Citigroup Inc. (stock symbol: C) has announced a 1-for-10 reverse split in its shares of common stock. Citigroup anticipates that the reverse stock split will be effective after the close of trading on May 6, 2011. Since our records indicate that some of your clients hold shares of this stock in their accounts, we would like to provide some information about this split that may be helpful.

What you and your clients need to know

• When the reverse stock split becomes effective, every 10 shares of issued and outstanding Citigroup common stock will be automatically combined into one issued and outstanding share of common stock.

Example: 100 shares pre-split = 10 shares post-split.

• Citigroup anticipates that its common stock will begin trading on a split adjusted basis on the New York Stock Exchange (NYSE) at the opening of trading on May 9, 2011. Citigroup common stock will continue trading on the NYSE under the symbol “C” but will trade under new CUSIP number 172967424.

• TD Ameritrade Institutional will cancel all equity and options orders that remain open at the close of trading on May 6.

• Citigroup will not distribute partial shares. If the number of shares held at the time of the split is not evenly divisible by 10, your clients will receive a cash payment in lieu of fractional shares.

• This reverse split will reduce the number of outstanding shares of Citigroup common stock from approximately 29 billion to approximately 2.9 billion.

 

Good to know.

 

Tags:

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. new replica watches announced commented on Sep 18

    … [Trackback]

    […] Here you can find 77764 more Information on that Topic: thereformedbroker.com/2011/05/04/oh-yeah-that-citigroup-reverse-split-is-this-week/ […]

  2. online vape shop commented on Oct 30

    … [Trackback]

    […] Find More on to that Topic: thereformedbroker.com/2011/05/04/oh-yeah-that-citigroup-reverse-split-is-this-week/ […]

  3. replica watches an jewlery commented on Nov 25

    … [Trackback]

    […] Find More Info here to that Topic: thereformedbroker.com/2011/05/04/oh-yeah-that-citigroup-reverse-split-is-this-week/ […]

  4. custom wigs commented on Nov 28

    … [Trackback]

    […] There you will find 18700 additional Info on that Topic: thereformedbroker.com/2011/05/04/oh-yeah-that-citigroup-reverse-split-is-this-week/ […]

  5. functional testing commented on Dec 19

    … [Trackback]

    […] Read More Info here to that Topic: thereformedbroker.com/2011/05/04/oh-yeah-that-citigroup-reverse-split-is-this-week/ […]

  6. 뉴툰 commented on Dec 28

    … [Trackback]

    […] Find More on to that Topic: thereformedbroker.com/2011/05/04/oh-yeah-that-citigroup-reverse-split-is-this-week/ […]

  7. replica Mens Tag Heuer Watches commented on Dec 30

    … [Trackback]

    […] Find More Info here on that Topic: thereformedbroker.com/2011/05/04/oh-yeah-that-citigroup-reverse-split-is-this-week/ […]

  8. cbd for anxiety commented on Jan 02

    … [Trackback]

    […] Find More Info here on that Topic: thereformedbroker.com/2011/05/04/oh-yeah-that-citigroup-reverse-split-is-this-week/ […]

  9. CI CD commented on Jan 11

    … [Trackback]

    […] Here you can find 2257 additional Information on that Topic: thereformedbroker.com/2011/05/04/oh-yeah-that-citigroup-reverse-split-is-this-week/ […]

  10. Yamaha NS-P150 manuals commented on Jan 21

    … [Trackback]

    […] There you will find 10836 additional Information on that Topic: thereformedbroker.com/2011/05/04/oh-yeah-that-citigroup-reverse-split-is-this-week/ […]