did general electric do a reverse stock split

This article answers “did general electric do a reverse stock split” by summarizing GE’s 1-for-8 reverse stock split in 2021, its authorization, mechanics, timing, shareholder effects, and market r...

2026-01-13 04:16:00

By Blockchain Lexicon

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Lead summary

The query “did general electric do a reverse stock split” asks whether General Electric Company executed a consolidation of shares. Yes — General Electric implemented a 1-for-8 reverse stock split in 2021. As of July 30, 2021, GE filed the charter amendment to effect the consolidation, and split-adjusted trading began on August 2, 2021. The action converted every eight pre-split shares into one post-split share and reduced outstanding shares from roughly 8.8 billion to about 1.1 billion.

Background

Asking “did general electric do a reverse stock split” requires context about GE’s transformation leading up to 2021. Over several years, GE sold or spun off major businesses including material portions of GE Capital and other units. These divestitures simplified the company’s structure but left GE with a comparatively large outstanding share count versus industrial peers.

Those corporate changes prompted management and the board to consider capital-structure moves to align per-share metrics with peer companies. As of March–May 2021, management publicly discussed the possibility of a reverse split as one tool among others to reshape the company’s equity structure.

As of March 22, 2021, according to GE’s definitive proxy statement, the company included a proposal to permit a reverse split in its 2021 proxy materials. That proposal was subsequently brought to a shareholder vote at GE’s annual meeting.

Authorization and shareholder approval

A corporate reverse stock split requires board approval plus the specific shareowner authorization process set out in the proxy materials and state corporate law. In GE’s case, the board proposed an amendment to the company’s certificate of incorporation to allow the consolidation of outstanding shares at a chosen ratio.

As of May 4, 2021, according to GE’s annual meeting materials and meeting results, shareholders voted on and approved the reverse split authorization included in the 2021 proxy. The shareholder vote authorized the board to effect a reverse split within the range described in the proxy and to file the necessary charter amendment with the appropriate state authority.

After shareholder approval, the board selected a specific ratio and directed officers to file the certificate amendment to make the change effective on a chosen date in coordination with the transfer agent and the exchange.

Terms of the reverse stock split

To clearly answer “did general electric do a reverse stock split” with the precise terms: GE executed a one-for-eight consolidation of shares.

Ratio: 1-for-8 (each eight pre-split shares consolidated into one post-split share).
Effective filing date: GE filed the certificate of amendment on July 30, 2021.
Split‑adjusted trading date: Split‑adjusted trading began on August 2, 2021.
Par value change: The par value of GE common stock was reduced to $0.01 per share as part of the charter amendment.
Approximate shares outstanding: The consolidation reduced GAAP shares outstanding from approximately 8.8 billion to roughly 1.1 billion shares on a post‑split basis.
Identifiers: The company continued trading under its ticker symbol “GE” on the NYSE; identifiers at the exchange and transfer agent were updated to reflect the post‑split share counts and par value.

As of July 30, 2021, according to GE’s press release announcing completion of the one-for-eight reverse stock split, the company executed the consolidation by filing the amended charter required under Delaware law.

Transfer agent and exchange identifiers

The reverse split procedure used GE’s transfer agent to serve as the exchange agent for registered holders. Registered shareholder records were adjusted according to the consolidation ratio. Street‑name holders (those holding through brokerages) had their positions updated by their broker or custodian.

Fractional shares were not issued. Where a holder would have been entitled to a fractional post‑split share, GE arranged for cash payment in lieu of fractional shares at a floor formula set out in the charter amendment and informational materials.

For holders of certificated shares, practical steps such as completing a letter of transmittal and, in some cases, providing a Medallion signature guarantee were required to exchange old certificates for new post‑split certificates. The transfer agent published the procedural steps and contact information for holders who needed to exchange physical certificates.

Mechanics and shareholder treatment

In answering “did general electric do a reverse stock split,” it is important to describe how shareholders were treated.

Street‑name accounts: Shareholders holding GE in brokerage accounts generally needed to take no action. Brokers and custodians adjusted positions automatically and communicated the new share totals on account statements.
Registered holders: Registered shareholders received communication from GE’s transfer agent with instructions for any required paperwork.
Holders of stock certificates: Physical certificate holders were guided to submit certificates and a properly completed letter of transmittal to the transfer agent to receive post‑split certificates or cash in lieu for fractions.
Fractional shares: No fractional shares were issued. The company paid cash in lieu for fractional entitlements, and international withholding or tax treatments could apply to cash payments for fractional shares in accordance with applicable law.

As of June 23, 2021, according to GE’s reverse split FAQ webcast materials provided to shareholders, the company explained the exact process and reiterated that most shareholders would not need to take action if shares were held electronically.

Rationale and management commentary

Management communicated a few principal reasons for the reverse split when answering “did general electric do a reverse stock split.” The stated goals included:

Aligning GE’s share count and per‑share metrics with industrial peer companies following divestitures and simplification of GE’s businesses.
Raising the reported per‑share trading price to levels more typical of large industrial firms, which management argued could improve comparability of per‑share metrics like EPS and dividend per share.
Enabling continued flexibility in capital structure and ensuring the share count was more consistent with the company’s new scale and operational profile.

Management emphasized that a reverse split is a capital‑structure technical adjustment and does not, by itself, change the company’s market capitalization, underlying assets, or business fundamentals. Any change in market value after the split would reflect market perceptions and other factors.

Effects on dividends, awards and accounting

A reverse stock split affects per‑share figures but not the aggregate amounts unless the company specifically changes cash distributions.

Dividends: GE’s per‑share dividend amounts were proportionally adjusted to reflect the consolidation. The total dollar amount paid to shareholders overall remained proportional to pre‑split payouts unless the board separately adjusted the dividend rate.
Equity awards and benefit plans: Outstanding equity‑based awards, restricted stock units, and employee share plans were adjusted on a reverse‑split basis so that the aggregate economic entitlement remained effectively unchanged. Plan documents typically provide for such adjustments on a corporate action.
Accounting and EPS: On a per‑share basis, metrics such as earnings per share (EPS) and book value per share increase as a mathematical result of fewer shares outstanding. GAAP and SEC reporting reflect split adjustments in per‑share disclosures and prior‑period restatements where required.

These proportional adjustments were described in GE’s investor materials and the proxy, and they were implemented as part of the mechanics of the consolidation.

Market reaction and media coverage

If you queried “did general electric do a reverse stock split” in news search bars in early August 2021, you would have found reports on immediate market reaction and commentary.

As of August 2, 2021, according to GE’s press release and market coverage, split‑adjusted trading began and media reports noted a large headline post‑split per‑share price. Several outlets reported that, in the immediate post‑split trading session and the days following, GE’s per‑share price moved above $100 on an unadjusted basis relative to pre‑split comparisons. Some financial media described the move as a notable change in the share price level after the consolidation.

Analyst commentary at the time varied. Some observers highlighted the technical effects of the reverse split on per‑share statistics. Others discussed whether the consolidation would change investor perception and attract different investor interest because of a higher per‑share price.

Media coverage included summaries of the split terms, the shareholder vote, and reminders that a reverse split does not change economic ownership percentages or company fundamentals absent other corporate actions. Reporting also outlined practical steps for shareholders and emphasized sources for official information published by GE and its transfer agent.

Regulatory filings and documentation

Official documentation is the definitive source for answering “did general electric do a reverse stock split.” Key documents and their dates include:

GE definitive proxy statement filed March 22, 2021 — describing the board proposal to authorize a reverse split and presenting the shareholder vote items.
Annual meeting results dated May 4, 2021 — showing shareholder approval for the authorization.
GE press release and SEC Exhibit/8‑K announcing the effective date and filing of the certificate of amendment dated July 30, 2021.
GE FAQ and webcast materials published in June and July 2021 — providing practical guidance to shareholders about the consolidation mechanics and fractional‑share treatment.

These filings provide the legal and procedural trail that shows how the reverse split was authorized and made effective under applicable law and exchange rules.

Practical considerations for shareholders

When evaluating “did general electric do a reverse stock split,” shareholders typically want to know if they must take action and how cash‑in‑lieu payments are handled.

Do nothing for street‑name holdings: Most retail investors holding GE shares in brokerage accounts needed to do nothing; brokers adjusted share balances automatically.
Certificates: If you held physical certificates, follow transfer agent instructions. You may have needed to submit certificates and a signed letter of transmittal. Some jurisdictions require a Medallion signature guarantee for certificate exchange.
Fractional‑share payments: The company paid cash in lieu for fractional amounts. International investors should be aware that cash‑in‑lieu payments may be subject to withholding taxes or reporting differences depending on jurisdiction and tax treaties.
Taxes: A reverse split is generally not a taxable event by itself for U.S. federal income tax purposes if the aggregate proportionate interests of shareholders do not change. However, the cash paid in lieu of fractional shares could have tax implications. Shareholders should consult a tax advisor for personal tax treatment.

As of June 23, 2021, according to GE’s reverse split FAQ, the company advised shareholders to consult their broker, tax adviser, or the transfer agent for any required procedural or tax questions.

Aftermath and longer‑term impact

A direct answer to “did general electric do a reverse stock split” is factual. The deeper question is whether the split achieved its intended objectives over time.

Technically, the reverse split reduced the share count and increased per‑share metrics. Whether it improved investor perception, trading liquidity, or access to different investor bases depended on subsequent fundamental performance and market conditions. Over the medium and long term, corporate fundamentals, earnings, cash flow, and business execution continue to drive market value more than a one‑time technical adjustment.

Observers noted that while the reverse split aligned GE’s per‑share measures with some peers, investor focus remained on the company’s operational results, backlog, cash generation, and strategic execution in power, aviation, and renewable segments.

References (selected primary sources and media coverage)

GE definitive proxy statement, filed March 22, 2021 (describing the proposed reverse split authorization).
GE annual meeting results, May 4, 2021 (shareholder approval of the reverse split authorization).
GE press release: “GE COMPLETES ONE-FOR-EIGHT REVERSE STOCK SPLIT,” filed July 30, 2021 (announcing filing of certificate of amendment and effective date).
GE reverse stock split FAQ (webcast/pdf), June 23, 2021 (shareholder guidance on mechanics and fractional shares).
SEC filings and 8‑K exhibits relating to the reverse split (filed July 30, 2021).
Nasdaq coverage: “GE Announces Date of 1-for-8 Reverse Stock Split…” (June/July 2021 reporting on the announcement and timing).
Major media coverage and market reaction summarized by business outlets in early August 2021, including reporting that post‑split trading reached per‑share price levels above $100 on certain days (market coverage from August 2–3, 2021).

Note: For exact filing text and legal language, consult the formal filings and GE investor materials that accompanied the reverse split. The sources above are the primary contemporaneous public disclosures.

External links and where to get more information

GE Investor Relations — reverse stock split FAQ and investor materials (search GE investor relations or contact GE investor relations for documents).
GE SEC filings — proxy statement, annual meeting results, and 8‑K exhibits (available via SEC filings search).
Transfer agent contact — consult your brokerage or GE’s transfer agent for instructions on handling physical certificates and cash‑in‑lieu matters.

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Answer recap

To restate the direct answer: did general electric do a reverse stock split? Yes — General Electric executed a 1‑for‑8 reverse stock split that was authorized by shareholders, filed July 30, 2021, and effective for split‑adjusted trading on August 2, 2021. The consolidation reduced outstanding shares by roughly eightfold (from ~8.8 billion to ~1.1 billion) and adjusted per‑share metrics while leaving overall economic ownership proportional for shareholders.