The not-so-good times continue for National Coal Corp. The Knoxville-based coal producer on Tuesday said its board had approved a 1-for-4 stock split.
Trading of the split stocks began today.
Reverse stock splits reduce the number of shares outstanding. This increases the value of individual shares but does not change the market value of the company’s total shares outstanding.
It’s all about appearances, or making the stock look more valuable than it really is. But will it be enough to bring National Coal a reversal of fortune?