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Common stock. It is calculated by subtracting retained earnings from total equity. read more at par = par value * number of shares issued.
Typically, you can't just make an amendment saying you now have a new par value. Instead, the most common way that corporations change their par value is with a stock split (or reverse stock split). A stock split is exactly what it sounds like: a division of shares.
The AMC reverse split happened on August 24. AMC shareholders who owned 100 shares before the split had 10 shares after the split. APE shares were converted into AMC shares on August 25.
Will the reverse stock split change the par value of the share? Yes, the par value of each share will be increased proportionally to the exchange ratio, i.e. it will be multiplied by 20.
The conversion process, in essence, requires a company to amend its Memorandum of Incorporation by a special resolution of its shareholders.
A stock split-up is a dividing up of outstanding shares into a greater number of share units. It merely reduces the per share value (the par value in the case of par value shares or the stated value in the case of no par value shares) of each outstanding share and increases the total number of shares issued.
A change in par value usually occurs when a company's stock is split. The par value is typically listed on stock certificates and usually does not represent the stock's actual value.
The number of outstanding shares of Common Stock will be decreased as a result of a Reverse Stock Split, but the number of authorized shares of Common Stock will not be so decreased.