Morgan Stanley Reports On Citigroup's Reverse Split (C)

Morgan Stanley Reports On Citigroup's Reverse Split (C) Morgan Stanley has issued a report on the performance of stocks following the reverse split of Citigroup C. In the report Morgan Stanley writes, "More than half the companies underperform the market following a reverse split. This percentage is greatest immediately following the split and normalizes to 50% after six months… The distribution is highly skewed, however, with some companies having extremely high relative returns following their reverse splits. Hence, by six months after the reverse split, the average return of a reverse-splitter becomes positive."