General Electric Reverse Stock Split

 General Electric (GE) announced that it will implement a 1-for-8 reverse split. The reverse splits will be effective before the market open on August 2nd, 2021. Clients are advised to close their positions before the end of Friday session on July 30th, 2021, as INGOT BROKERS will close GE open positions automatically by end of the session.

 After 30.07.2021 session.

Why GE is doing Reverse Split?

 The purpose of the reverse stock split is to reduce the number of our outstanding shares of common stock, and to increase the per share trading price of GE stock to levels that are better aligned with companies of GE's size and scope and a clearer reflection of the GE of the future, not the past.

 Will This Reverse Stock Split Be a Rare Winner?

CFO Carolina Dybeck Happe tried to explain the reason for the reverse split. She noted that although GE has divested several of its major business units in recent years, in particular the GE Capital financial unit, it hasn't made any corresponding adjustments to its outstanding share count. The result is a share base that inappropriately reflects the enterprise's former size rather than its more compact current configuration. After the split, GE will have just 1.1 billion shares outstanding, with a stock price that should come in just over $100 per share based on where shares closed on Monday.