Citigroup reverse stock split.

The near collapse Citigroup has on Monday executed a reverse split to lift its stock out of the single digits. Friday's closing was $4.43 per share.Under Citi's plan, 10 shares of stock were exchanged for one new share, raising the price by 10 times
And the reverse stock split gave investors one new share to replace 10 - will raise the trading price from $4.43 to a more respectable $44 a share but not increase the stock's actual value, of course.Instituitional fund managers are restricted to hold stocks below the $5.00 mark so with this new found cosmetic adjustment,Citigroup is now heading towards a new dimension and will definitely compete with its other peers on the Dow Industrials.
As a result of the 1-for-10 reverse split, planned on May 6, the number of total Citigroup shares will fall to 2.9 billion from 29 billion. There will be no change in the par value per share.
No fractional shares were issued in connection with the reverse stock split. Instead, Citi’s transfer agent will aggregate all fractional shares that otherwise would have been issued as a result of the reverse stock split and those shares will be sold into the market. Shareholders who would otherwise hold a fractional share of Citigroup common stock will receive a cash payment from the net proceeds of that sale in lieu of such fractional share.
As a result of the reverse stock split, adjustments are required to be made to certain of Citi’s outstanding securities including its warrants, convertible preferred stock, T-DECS and the rights issued pursuant to the terms of Citi’s Tax Benefits Preservation Plan (the “Plan”).
“Executing the reverse stock split and our intention to reinstate a quarterly common stock dividend are important steps as we anticipate returning capital to shareholders starting next year,” said Vikram Pandit, Chief Executive Officer of Citigroup. “Taken together, we believe these actions will reduce volatility while broadening the base of potential investors. Now that we have established consistent profitability, we are working towards our next goal of responsible growth.”
Warrants Due October 28, 2018
Warrant Share Number Prior to Adjustment :One share of Common Stock
Warrant Share Number After Adjustment :1/10th of one share of common stock
Exercise Price Prior to Adjustment:$17.85
Exercise Price After Adjustment :$178.50 (17.85 X 1/0.10)

Tracking the Dow,Monday 9/05/11.
Economic calender:No economic news today.
Dow Futures expiry:9 market days to go.
9:30am:--A mild 20.0 points gap up followed by bearish hammer.
10:30am:--Pullback filling the opening gap to find a session low.
11:30am:--A rebound to session bull pivot.
12:30noon:--Sudden spike up to find a new session high.Shooting star checkmate.
1:30pm:--A pullback to bull pivot support.
2:30pm:--Still hoovering around the bull pivot support for the second time.
3:30pm:--Bull pivot supporthas been breached.
4:00pm:--Gap down with a powerful bearish hammer.Follow through might be very bearish.
The overall first week Dow's candlestick is a very bearish hammer(blue candlestick).
Oil prices, which have fallen heavily during the week on fears of falling demand and were trading as low as $105.15.
A strong nonfarm-payrolls number helped lift shares of American Express Co. and some other consumer-financial firms Friday, though gains in many in the sector finished off session highs.
As at today the Dow index is still in the bear county which doesn't looks safe at the moment.The negative sentiment strength is still haunting the overall market due to the Greek economy in doldrum fears being slotted in for this month theme play.
The market is pricing in the effect of next month Quantitative Easing expiry when easy money comes to a halt.