The fact shares of one of the largest U.S. banks traded for less than $5 a share is a startling concept on its face. But given the strain the financial system came under during the financial crisis and Citigroup's big role in the mortgage mess, it doesn't take long to see why Citigroup's value has plunged to $124 billion.
But in an age when having a high per-share price is trendy and prestigious, think of Berkshire Hathaway (BRK.A) at $121,020, Apple (AAPL) at $346.57 and Google (GOOG) at $535.05, it's not surprising that Citigroup is eager to shed its rap as being a low-priced stock.
The best way for a company to drive its share price higher is by boosting revenue and earnings. Eventually, investors will recognize the rising cash flow and earnings and push the stock price higher. But, barring that, the easiest way to get a stock price up, without making any underlying improvements to the business, is with a reverse stock split. Read More...
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