New York Community Bank Plans 1-for-3 Reverse Stock Split in July

Key Takeaways New York Community Bancorp, Inc. (NYCB) said it will go ahead with a 1-for-3 reverse stock split sometime mid-to-late July, after its board approved the move Wednesday. Why Do Companies Do Reverse Stock Splits? For example, if a company has 10 shares, worth $10 each, its market capitalization would be $100 (10x$10). If it carries out a 1-for-2 reverse stock split, it would have 5 shares, worth $20 at the time of the split while the market cap remains steady at $100. It is pretty much the oppos ...