30 Aug 07 Sri Adhikari Brothers Reverse Stock Split

Sri Adhikari Brothers has informed the stock exchanges that the board of Sri Adhikari Brothers Television Network has approved the consolidation of face value of the company’s shares (reverse stock split) from 5 shares of face value Rs. 2 each to 1 share of face value Rs. 10 each. Sri Adhikari Brothers Television Network share prices were up after this announcement was made. A stock split increases liquidity and hence there is an increase in share prices during a stock split. The opposite takes place in case of the reverse stock split and logically the share prices should fall during a reverse stock split. However that doesn’t seem to be happening in case of the Sri Adhikari Brothers Reverse Stock Split.