Stock split for Citigroup: Will it work?
By Giovanny Moreano, quantitative analyst for CNBC.com
Citigroup's 1-for-10 reverse stock split took effect today, decreasing the company's shares outstanding to about 2.9 billion, and boosting its share price to around $45.
Prior to the financial crisis, in December 2006, Citigroup shares reached an all-time high level of $57. By March 5, 2009, Citi shares fell below $1, trading as low as $0.97.
Since January 2009, the stock has remained in the single digits, trading below $6 until today.
Following Citi's reverse split, will large investors such as pension funds and mutual funds, which are usually barred from owning stocks under $5, reach for the carrot?
Click on the chart above to see some of the stock splits in the past year in the S&P 500 and how those stocks performed.
