Michigan Proposal to amend articles of incorporation to effect a reverse stock split of common stock and authorize a share dividend on common stock

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Multi-State
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US-CC-3-214E
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Word; 
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This sample form, a detailed Proposal to Amend the Amended and Restated Articles of Incorporation to Effect a Reverse Stock Split of Common Stock and to Authorize a Share Dividend on the Common Stock document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats.
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  • Preview Proposal to amend articles of incorporation to effect a reverse stock split of common stock and authorize a share dividend on common stock
  • Preview Proposal to amend articles of incorporation to effect a reverse stock split of common stock and authorize a share dividend on common stock
  • Preview Proposal to amend articles of incorporation to effect a reverse stock split of common stock and authorize a share dividend on common stock
  • Preview Proposal to amend articles of incorporation to effect a reverse stock split of common stock and authorize a share dividend on common stock
  • Preview Proposal to amend articles of incorporation to effect a reverse stock split of common stock and authorize a share dividend on common stock
  • Preview Proposal to amend articles of incorporation to effect a reverse stock split of common stock and authorize a share dividend on common stock

How to fill out Proposal To Amend Articles Of Incorporation To Effect A Reverse Stock Split Of Common Stock And Authorize A Share Dividend On Common Stock?

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FAQ

Key Takeaways. A company performs a reverse stock split to boost its stock price by decreasing the number of shares outstanding. A reverse stock split has no immediate effect on the company's value, as its market capitalization remains the same after it's executed.

The split may elicit additional interest in the company's stock, but fundamentally investors are no better or worse off than before, since the market value of their holdings stays the same.

Selling before a reverse stock split is a good idea, but selling after the reverse stock split is not. Since you can sell before and after a reverse stock split, selling during one is optional. The main advantage of selling before the reverse stock split is that you don't have to wait around for it to happen.

Do you lose money on a reverse split? No. You do not lose money or make money with a reverse stock split. You simply have fewer shares of stock, but each share will have more value.

The main difference between a stock split and a reverse split is that while a reverse stock split decreases the number of outstanding shares without affecting the overall value, a conventional stock split increases the number of shares in the same way.

The 1-for-9 reverse stock split will automatically combine and convert nine current shares of the Company's Common Stock into one issued and outstanding share of Common Stock. Proportional adjustments also will be made to outstanding equity awards, warrants and convertible notes, and certain existing agreements.

Can you make money from reverse stock splits? A reverse stock split isn't usually a get-rich-quick ploy, but it could lead to greater rewards for savvy investors. In some cases, reverse splits can increase investor confidence and potentially boost the price of a stock as more investors take interest and snap up shares.

A reverse stock split may be used to reduce the number of shareholders. If a company completes a reverse split in which 1 new share is issued for every 100 old shares, any investor holding fewer than 100 shares would simply receive a cash payment.

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Michigan Proposal to amend articles of incorporation to effect a reverse stock split of common stock and authorize a share dividend on common stock