3:35 PM (1 hour ago)
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Disgusting GSK reverse stock split// #708 Optimal Strategy of Playing the StockMarket via VonNeumann Game Theory.
I just now have learned of GSK reverse stock split of ratio 4 to 5, which went into effect on friday 22July2022.
As you can imagine-- expecting to see 700 shares all of a sudden become 560 shares and a new share company of HLN be 700 shares.
So my first reaction was disgust. Who do a reverse stock split?? I cannot imagine a reverse stock split ever benefiting share holders. I suppose the reverse was done just so the CEO of GSK is better off more secure in her job, at the expense of shareholders. In my mind, the rightful move would have been 700 of HLN with 700GSK in tact. No, I am now reduced from 700 GSK to that of 560 GSK. In my mind that is a stealing of 140 GSK from AP. Who in the world does a reverse stock split, except a company who is in some form of trouble, and has their heads screwed on backwards. A company that is successful would have given me my original 700 GSK plus 700 HLN, or even just 560HLN so long as my 700 GSK remained in place.
AT&T recently had a company wide overhaul, but when all was said and done, I had my original AT&T shares plus the new company shares. Comparing that to Glaxo, for Glaxo screwed AP who had 700 GSK before and afterwards has but 560 GSK, a stealing of 140 shares.
My portfolio is now.
PORTFOLIO of PAF of 22July2022
T 35,490 AT&T
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4:53 PM (1 minute ago)
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Sorry, this is getting to be more and more complicated with each passing hour.
--- quoting from GSK website ---
GSK (GSK) has 2 splits in our GSK stock split history database. The first split for GSK took place on July 19, 2022. This was a 8 for 10 reverse split, meaning for each 10 shares of GSK owned pre-split, the shareholder now owned 8 shares. For example, a 1000 share position pre-split, became a 800 share position following the split. GSK's second split took place on July 22, 2022. This was a 1226 for 1000 split, meaning for each 1000 shares of GSK owned pre-split, the shareholder now owned 1226 shares. For example, a 800 share position pre-split, became a 980.8 share position following the split.
When a company such as GSK splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business. When a company such as GSK conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, ....
--- end quoting ---
So at the moment my portfolio is showing 700 Haleon shares and 560 GSK shares down from 700.
But if the above is true, then I should get 560 X 1.226 = 686.56 shares of GSK, down from 700 by approximately 14 shares. And I can certainly live content with that. But ask the simple question, why go through all this comedy math when you just simply keep every shareholder with same quantity he/she started with.
Is it that some idiot investment house in London told GSK, do this comedy math so our investment house can make more money in doing frivolous math.