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TMFEditorsDesk (< 20)

AIG up 1700%? Uh, no.

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July 01, 2009 – Comments (4) | RELATED TICKERS: AIG

In case you're wondering why AIG shares have popped from $1.16 yesterday to above $20 this morning, the answer is that the company's 1-for-20 reverse split went effective today.

You can find the initial SEC filing announcing the proposal here:

http://www.sec.gov/Archives/edgar/data/5272/000093041309002838/c57286_pre14a.htm

Finally, if you've found yourself down 1,000+ points on CAPS because of this (as I am), don't worry -- based on past experience, we'll get it resolved soon.

cheers,

Dan Caplinger (TMFGalagan) - no real-money position in AIG

4 Comments – Post Your Own

#1) On July 01, 2009 at 10:56 AM, SkinneeJ (27.84) wrote:

What if I only bought 19 shares?

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#2) On July 01, 2009 at 11:12 AM, jddubya (< 20) wrote:

So that explains the problem with the "Champion of the World" contest.... a single players jump from obscurity to the #1 spot was due to the AIG reverse split.

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#3) On July 01, 2009 at 11:25 AM, TMFGalagan (91.86) wrote:

SkinneeJ -

If you only bought 19 shares (or don't own a perfect multiple of 20), then most brokers will give you cash back in lieu of fractional shares.

dan

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#4) On July 01, 2009 at 1:00 PM, SkinneeJ (27.84) wrote:

I was just kidding, but that is interesting and makes perfect sense.  I was just trying to think of any way that you could actually win by owning this stock :)

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