[ad_1]
A share in Arendals Fossekompani cost NOK 3,500 on Tuesday afternoon. Now the board will divide it.
Published:
Arendals Fossekompani calls an extraordinary general meeting on November 19 with only one item on the agenda.
The company whose stock has long been considered the most expensive in Oslo Børs will carry out a stock split.
“In order for the market value of the shares to be more in line with other shares on the Oslo Stock Exchange and to strengthen the liquidity of the share, the board proposes that a share split be carried out in which each share of the company is divided into 25 shares, “the board writes in the notice.
For shareholders, the stock split means that if you own 10 shares in the company today, they will receive a total of 250 shares when the split is finally completed.
At the end of the trading day on Tuesday, Arendal’s Fossekompani share closed at a price of 3,500 NOK. Therefore, the stock costs almost NOK 3,000 more than Børsen’s second most expensive share.
A stock split means that a company raises more shares, so the value per share is lower. The desired effect is typically to increase the liquidity of the stock, which can potentially happen as a result of more stocks being available for trading.
The opposite of a stock split, a stock splice, usually takes place because the stock price has been very low for a long time. A typical example of this is when the share price has been below a crown for a long time and the Oslo Stock Exchange asks the company to take action. So companies often end up proposing a stock splice.
