How did the reverse stock split of Movie Pass’s parent company affect its total stockholders’ equity?

Helios and Matheson is parent company Reverse stock split 1:250 Implemented July 25, 2018 Stock price was adjusted from 8.5 cents per share to $21.25 per share after the reverse split Trying to avoid being delisted by NASDAQ

Question 1 What impact did the reverse stock split have on Helios and Matheson’s total stockholders’ equity?

Question 2 What impact does a reverse stock split have on a stock’s par value? Explain.

Question 3 Why do you think Helios and Matheson did not want to be delisted from NASDAQ?

Question 4 What has happened to the market price of Helios and Matheson stock since the reverse stock split was implemented on July 25, 2018?

Question Recap What impact did the reverse stock split have on Helios and Matheson’s total stockholders’ equity? What impact does a reverse stock split have on a stock’s par value? Explain. Why do you think Helios and Matheson did not want to be delisted from NASDAQ? What has happened to the market price of Helios and Matheson stock since the reverse stock split was implemented on July 25, 2018?

For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/ Questions or comments? Dr. Wendy Tietz at wtietz@kent.edu