Can anyone clarify if there is a formal restriction for Issuer to chose a ratio without remainder for a stock-split ? For example, is the issuer allowed to do perform the following exercise: Starting point: 100 shares at 10 USD each giving 1000 USD in total , Stock split at a ratio of 1:3. Result: 300 shares at 3.33 USD giving 999 USD total. Is this allowed, how to register the missing 1 USD? Many Thanks
Stock Split - Issuer Side
Many times they issue the fraction as cash to the investor(s).
Filed Under: Credit & Capital