Mr Cooper Group Inc (COOP): The number of shares COULD matter becaus...

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JusticeWillWin

Re: goodietime post# 496032

Friday, 11/17/2017 2:37:54 AM

Friday, November 17, 2017 2:37:54 AM

The number of shares COULD matter because a R/S would not affect the number of authorized shares. The number of authorized shares would always stay at 3.5 bln.

From:

https://finance.zacks.com/split-stocks-count-against-authorized-shares-10955.html

Reverse stock splits don't affect the number of authorized shares, but a forward stock split issues new stock from the company's authorized shares.

[...]

Stock splits affect only the issued and outstanding stock -- the authorized shares don't split.

At the moment they can only achieve a ratio of 206 million / 3.3 billion new shares, after a 1 for 5 R/S they could achieve 41 million / 3.3 billion, but I really do not know if that is their goal.

Your post:

"So maybe they do not want more than 50 million outstanding shares before they move forward so hence reverse stock split."

The VALUE remains the same, so why would number of shares matter?

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- Just my personal opinion, no investment advice! -
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