Safeguard Scientifics Announced Company's Board Of Directors Determined The Reverse Stock Split Ratio To Be 1-For-100 And The Forward Stock Split Ratio To Be 100-For-1
Portfolio Pulse from Benzinga Newsdesk
Safeguard Scientifics has announced that its Board of Directors has determined the ratios for a reverse and subsequent forward stock split. The reverse stock split will be conducted at a ratio of 1-for-100, followed by a forward stock split at a ratio of 100-for-1.
December 18, 2023 | 9:38 pm
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NEUTRAL IMPACT
Safeguard Scientifics' reverse and forward stock split announcement may lead to short-term volatility as investors react to the changes in share structure.
Stock splits often lead to increased volatility as the market adjusts to the new share structure. However, since the reverse and forward splits cancel each other out, the long-term impact on the company's market capitalization is neutral. Short-term price movements may occur as some investors may misinterpret the action or use it as an opportunity to adjust their positions.
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RELEVANCE 100