citigroup reverse split

oh yeah, that citigroup reverse split is this week…

• Joshua M Brown
 
• May 4th, 2011

http://www.thereformedbroker.com/2011/05/04/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.

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