Chesapeake Floats Reverse Stock Split – Turn 200 Shares into 1

Last December the New York Stock Exchange sent Chesapeake Energy an official notification that the company's stock price has fallen below the $1/share threshold for more than 30 consecutive trading days and because of it, Chessy’s stock will be delisted from the exchange--unless it can boost the share price within a certain period of time (see NYSE Warns Chesapeake Energy Stock to be Delisted…Unless). Speculation immediately began that Chessy would do a reverse stock split--combining multiple shares into a single share, thereby boosting the price of the remaining shares. Yesterday Chesapeake announced they will ask shareholders to approve such a reverse split.

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