Will This Reverse Stock Split Be a Rare Winner?
Reverse stock splits aren't generally seen as a good sign. When a stock has to resort to cutting its number of shares outstanding to boost its price, it's often an indicator that the company doesn't think its business can support the kind of growth necessary to get its stock moving in the right direction without such moves.
Last Friday, General Electric (NYSE: GE) confirmed that it will become the latest company to roll the dice on a reverse split. We'll examine some details on the reverse stock split and what it means for investors, but first, let's take a quick look at how the broader market did to begin the week.
Monday brought bullish investors back to the investing world after tough conditions last week sent stocks reeling. By the time the closing bell rang, the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) were up significantly.
Source Fool.com
