How does a reverse stock split work for current employees?
How does the reverse stock split work for current employees? Do they get an updated offer letter to each one of them saying that the number of stocks they are getting is going to be 1/3 of the original number of units? And for those who stayed at company for more than a year and already got the granted units, does Pinterest get the other 2/3 of units back from employees?
Everything gets reverse split but the price increases. So in effect, the value is still the same in the end. (total # of shares before)*(price per share) = market cap (total # of shares before/RS split factor)(price per share * RS split factor) = market cap Both will be the same