Why citi reverse split

Treasury finished that process in December. Now with 29 billion shares outstanding, the bank would be unlikely to win regulatory approval for even a token dividend. The reverse split would reduce the share count to 2. Absent a reverse split, the minimum payout would be 10 times that sum. Because Citigroup is the most actively traded U. It will also hurt day traders and retail investors, who will now need more resources to trade a higher-priced stock.

Citi is executing its strategy of focusing on its core businesses in Citicorp to support economic growth including banking, providing loans to small businesses, making markets and providing capital, while continuing to wind down Citi Holdings in an economically rational manner.

At the end of , the U. Citi's capital strength is among the best in the industry and the bank is focused on putting its unmatched global network to use for its clients to foster sustainable and responsible growth. Get the app for Android. Get the app for iOS. Citi Citi, the leading global financial services company, has approximately million customer accounts and does business in more than countries and jurisdictions. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

The reverse stock split will see 10 of Citigroup's shares C. N combined into one and is set for after the close of trading on May 6. The bank is the most actively traded stock in the United States and has a massive 29 billion shares outstanding thanks to equity issued during the financial crisis. That is nine times more than the average for Dow industrial stocks.