What Would a Reverse Stock Split Mean for Citigroup?
Citigroup (NYSE: C) remains consistently at the top of the New York Stock Exchange’s volume leaders list on a daily basis because has 28.62 billion outstanding shares and a market-cap of $130 billion. With Citigroup’s stock price consistently trading below $5.00 since the beginning of 2009, investors are beginning to murmur as to whether or not Citigroup (NYSE: C) will engage in a reverse stock split. During the company’s last two annual shareholders meetings, votes from shareholders allowed the bank’s board to explore and the possibility of a reverse stock split. Even the U.S. Treasury voted in favor of the reverse stock split measure, saying in a statement that the split “will address the fact that the company has a much larger number of shares outstanding than is necessary to ensure adequate trading liquidity.” At the company’s annual meeting, some shareholders suggested Citigroup undergo a reverse stock split, arguing that if the company had a higher base share-price, its stock wou
