By Victor Golovtchenko
Starting from October the 1st, FXCM Inc (NYSE:FXCM) will be enacting a decision made by the broker’s board earlier this month. The reverse stock split will become effective from the 1st of October, when for every 10 shares owned by any given investor, he will receive one new share.
The number of shares in circulation will be reduced by a factor of 10 to about 5,372,666 shares when compared to the current 53,726,664. The reverse stock split is being enacted due to listing requirements of the New York Stock Exchange (NYSE). The share value of every company which is traded on the NYSE can not remain below $1 for longer than 30 trading days.
The prospect for a delisting form the NYSE has prompted the management of FXCM Inc (NYSE:FXCM) to approve the reverse stock split. The shares of the brokerage have been trading below $1 on a closing basis since September the 2nd.
The company’s shares will continue trading on the NYSE with the same symbol as before - FXCM, but the stock will receive a new number from the Committee on Uniform Securities Identification Procedures - 302693205.
According to the company’s announcement, no fractional shares have been issued to compensate for the reverse stock split. To adjust for any fractional amounts of shares, which shareholders may end up with after the adjustment, the company will distribute cash in an amount equal to the closing sale price per share of FXCM Inc’s common stock on the 30th of September.
All shareholders of the company will receive stock ownership information from American Stock Transfer & Trust Company, LLC, which is the transfer agent of FXCM Inc (NYSE:FXCM).