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How much should my position be after a 5-1 stock split. For ever 5 shares, I get 1 share.

My position before split:

500 shares of ABC with average price of $25.

ABC is trading at $9.  My position is worth $8000 ($12500 - $4500).

After the 5-1 split:

100 shares of ABC with avg price of ??

ABC is trading at $45.

What should my average price be?

I think it comes out to 100 @ $125?

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    Your position is worth $4500 before the split as well as after the split. – Victor May 21 '15 at 13:50
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    Is this a 5:1 split or 1:5 reverse split? The 500 @ 9 to 100 @ 45 makes it look like a reverse split; your position would be $4500 in both cases. Most stock trackers do not differentiate between these types, they're both split events. – user662852 May 21 '15 at 14:59
  • The original poster shows 500 shares originally and 100 shares after, which is a 5:1 split and not a reverse split. The original posters "My position is worth" is incorrect. The OP's "average price per share is indeed 100 @ $125" – Norgate Data May 21 '15 at 16:43
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The average price would be $125 which would be used to compute your basis. You paid $12,500 for the stock that is now worth $4,500 which is a loss of $8,000 overall if you sell at this point.

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