Citigroup: Back above $40 with a Dividend
Just like that, Citigroup (NYSE:C) is back above $40 a share and is back to paying out a dividend.
On May 9th Citigroup executed a reverse stock split. 10 shares of Citi's stock were exchanged for one new share, raising the price by 10 times. Since there will be fewer shares outstanding, the total value of the company will remain the same.
WallStNation.com Sponsors - Become one Today
The reverse split was designed to let more large investors like pension and mutual funds buy Citigroup stock. Many large funds are not allowed to own stocks that trade below $5.
Citigroup made news today by reinstating its dividend of 1 penny per share, its payable June 17. Best of luck to all the longs.