GE's Stock Price Jump

If you own shares of GE, you may have noticed that the share price jumped 700 percent in one day! The reason is that GE underwent a 1-for-8 reverse stock split. As a result, the stock price increased from $12.95 to about $104. CEO Larry Culp stated that the split was undertaken to be more comparable to its peers. Typically, a reverse stock split is done after poor stock performance. However, GE's stock has increased by about 20 percent so far this year. However, as we note in the textbook and the article notes, stock spits really don't amount to much more than keeping a stock price in a familiar range.