This just isn't that hard .... scenario:
Bob has 50,000 shares of cemjq.
Chemtura exits bankruptcy and issues new shares at $10 value, but dilutes existing shareholders by 50%.
So, Bob's shares are equivalent to $5 value.
To determine how many shares Bob has, first determine the value of his diluted shares, or $5 X 50,000 shares = $250,000.
Then divide the value of his shares by the offering price of the new shares, or $250,000 / $10 = 25,000 shares.
Bob gets issued 25,000 shares of the new Chemtura stock and his previously held shares get annihilated.
