Beasley Broadcast Group Inc. (Nasdaq: BBGI) has announced a 1-for-20 reverse stock split, effective September 23, 2024. But what does this mean for shareholders? A reverse stock split reduces the number of shares investors own while increasing the price per share. In BBGI’s case, for every 20 shares you hold, you’ll now own one share. For example, if you own 100 shares at $0.50 each, after the split, you’ll own five shares priced at around $10 each. Importantly, the total value of your investment stays the same before any market fluctuations. BBGI is conducting this reverse stock split to boost its stock price and comply with Nasdaq’s requirement for stocks to trade above $1.00. The split helps the company remain listed on the exchange. Shareholders don’t need to take any action – your broker will automatically adjust the number of shares. However, if you end up with a fractional share (e.g., owning 25 shares pre-split), you’ll receive cash for the fraction rather than owning a partial share. The reverse split will take effect on September 23, 2024, with shares trading at the new price starting September 24. While your share count decreases, the goal is to stabilize BBGI’s stock price and position the company for future growth. In summary, the reverse stock split is a technical adjustment, and the value of your investment remains the same. Keep an eye on the stock’s performance post-split to gauge its long-term impact.