Fannie Mae-No Politics (FNMA)

[monda2frida]

Here's how a forward split or reverse split works:

Forward split: the outstanding shares are increased by whatever ratio is decided-let's say 5/1. So in the case of FNMA, if there are 1 billion o/s, there will be 5 billion o/s after a 5/1 F/S. The share price will adjust to 1/5 of the price-so the share price would be around .50/share after a F/S, using today's price of $2.50/share.

Reverse split-let's say there is a 1/10 R/S. Again, using the 1 billion o/s, after a 1/10 R/S, there would be 100 million outstanding shares, and the share price would be approx $25/share using today's price of $2.50/share.