Here are the upcoming stock splits for the week of February 3 to February 7 in the Australian market. For additional details on stock splits in the UK and US markets, visit TipRanks’ Stock Splits Calendar.
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A stock split is a financial move when a company issues more shares to its existing shareholders, while reducing the price per share. Consequently, the total value of the investment remains the same for a shareholder. Similarly, the overall market capitalization of the company remains the same both before and after the split.
Stock splits are often done to make shares more affordable to small investors and increase liquidity.
On the other hand, in a reverse stock split, a company reduces the total number of outstanding shares by consolidating them. Despite this reduction, the company’s market capitalization remains unchanged because the share price increases proportionally to balance the consolidation. It is also known as stock consolidation and is often used to boost the stock price, which can help meet listing requirements or improve the stock’s perception in the market.
Let’s take a quick look at the upcoming stock split in Australia for this week.
Murray Cod Australia Limited (AU:MCA) – Murray Cod Australia specializes in breeding, farming, and selling Murray cod, a large predatory freshwater fish native to Australia. On January 21, the company announced a one-for-ten security consolidation (reverse stock split) for its ordinary shares. The stock split will take effect on February 3, with shares beginning to trade on a split-adjusted basis starting February 5.
The consolidation is intended to simplify the company’s capital structure and improve liquidity by reducing the number of shares in circulation. Overall, the consolidation will reduce each shareholder’s holdings by a factor of 10. This means that for every 10 shares a shareholder holds, they will have 1 share after the consolidation.
To find more information about historical and upcoming stock splits in different markets, visit the TipRanks Stock Splits Calendar.
