Enter a share count, a price and a 1-for-N ratio to see the mechanical effect of a reverse split on the day it takes effect, before any trading. Add authorized shares to see how much room the company has to issue new stock before and after, and list past splits to get the cumulative ratio.
Every N old shares become 1 new share.
The proxy statement says whether the split also reduces authorized shares. Many do not.
To see the whole and fractional shares one holder would end up with.
Shares outstanding
4,000,000
from 80,000,000
Theoretical price
$8.00
from $0.40, before any trading
Market value
$32,000,000
Unchanged by the split alone
Ratio
1-for-20
20 old shares → 1 new share
| Before | After | |
|---|---|---|
| Authorized | 200,000,000 | 200,000,000 |
| Outstanding | 80,000,000 | 4,000,000 |
| Unissued headroom | 120,000,000 | 196,000,000 |
| Headroom as % of outstanding | 150% | 4,900% |
Fractional shares
10,050 shares ÷ 20 = 502.5 new shares: 502 whole and 0.5 of a share. At the theoretical price, cash in lieu for that fraction would be about $4.00; some companies round up to a whole share instead.
Hypothetical illustration of how the contract arithmetic works. It is not a forecast of any company’s share count or price, and it is not investment advice.
Separate with commas. For Nasdaq’s cumulative limit, include only splits from the prior two years.
Cumulative ratio
1-for-320
8 × 40
Against the 250:1 line
At or above
Under Rule 5810(c)(3)(A)(iv), a bid-price failure now would come with no compliance period.
An original holder of 320 shares would now hold one. A bid-price failure within one year of any reverse split also removes the compliance period, whatever the cumulative ratio.
