Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

Really?

I will post FIVE examples of companies who reduced both outstanding and authorized shares during a reverse split. Very simple.

So, let's see them. But I am guessing what will be shown are examples of forward splits not reverse splits because the A/S does not change in a reverse but it does in a forward split...if the companies need to increase the A/S to accommodate the forward. Links? Of course, followed by a statement that would help provide a learning shortcut.

https://pocketsense.com/pros-cons-reverse-stock-split-6853805.html

https://www.investopedia.com/ask/answers/071415/why-would-company-perform-reverse-stock-split.asp

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

Authorized Shares
When a company incorporates, among the things the owners of the company decide is how many shares to authorize. Authorized shares are the total number of shares of each class of stock that the company has available to issue. If company management wants to increase the number of authorized shares, it must obtain the approval of the shareholders via a formal vote. Stock splits affect only the issued and outstanding stock -- the authorized shares don't split.

Forward Splits
The board of directors decides when to dip into the authorized shares to issue new stock, and when those shares are issued, they are called issued and outstanding stock. A forward stock split increases the total number of shares issued and outstanding. For example, when the company conducts a 2-for-1 forward split, it doubles its issued shares, taking those additional shares out of the amount of authorized shares. If the forward split results in more stock issued than is available in authorized shares, the board holds a vote of the stockholders to authorize more shares. If a company has 100 million shares authorized and 75 million shares issued and outstanding, shareholders must authorize an additional 25 million shares for the company to legally issue a 2-for-1 forward split.

Reverse Stock Splits
A reverse stock split diminishes the total number of issued and outstanding shares of a company's stock, but it does not affect a shareholder's percentage ownership of the company. Because the shares have been previously issued, it does not affect or add back shares to the number of authorized shares; it simply condenses the number of issued and outstanding shares. An example of a reverse stock split would be a 1-for-50 split in which the stockholder exchanges 50 shares of pre-split stock and receives one share of new stock in return.