Gevo Inc (GEVO)

[BottomBounce]

3 Reverse Splits $GEVO #GEVO GEVO Gevo (GEVO) has 3 splits GEVO. The first split for GEVO took place on April 21, 2015. This was a 1 for 15 reverse split, meaning for each 15 shares of GEVO owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 66.6666666666667 share position following the split. GEVO's second split took place on January 06, 2017. This was a 1 for 20 reverse split, meaning for each 20 shares of GEVO owned pre-split, the shareholder now owned 1 share. For example, a 66.6666666666667 share position pre-split, became a 3.33333333333333 share position following the split. GEVO's third split took place on June 04, 2018. This was a 1 for 20 reverse split, meaning for each 20 shares of GEVO owned pre-split, the shareholder now owned 1 share. For example, a 3.33333333333333 share position pre-split, became a 0.166666666666667 share position following the split.
When a company such as Gevo conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.