Chimera Investment Announces 1-For-3 Reverse Stock Split
Portfolio Pulse from Benzinga Newsdesk
Chimera Investment has announced a 1-for-3 reverse stock split, a move that will reduce the number of shares outstanding and typically aims to increase the stock price by consolidating shares. This action is often taken by companies seeking to meet exchange listing requirements or to improve the stock's appeal to investors.
May 10, 2024 | 8:16 pm
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The 1-for-3 reverse stock split by Chimera Investment is intended to consolidate shares, potentially increasing the stock price and ensuring compliance with exchange listing standards.
Reverse stock splits are used by companies to increase their share price by reducing the number of shares outstanding, which can make the stock more appealing to investors and ensure compliance with stock exchange minimum price requirements. While the immediate impact may be positive in terms of perception, the long-term effects depend on the company's performance and investor sentiment.
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