On 4/23/2021, the iPath Series B S&P 500 VIX Short-Term Futures ETN completed a 1-for-4 reverse stock split. As of 4/23/2021, shareholders hold 1 share of VXX for every 4 shares previously held. As a result, VXX has adjusted its price per share to accommodate the decrease in the company’s outstanding shares. A reverse stock split does not by itself change the total dollar value of your position. But, as always, the value of a company’s stock may change due to market fluctuation.

To calculate the number of shares that you will have after the split, multiply the ratio of the stock split by the number of shares you held at the time of the split (1-for-4 ratio means 1 divided by 4 equals 0.25). To do the calculation for your own shares, use the following equation: Shares previously owned x 0.25 = new amount of shares held.

Example 1-for-4 reverse stock split:

If you owned 4 shares of Example Company valued at $10 per share, your investment would have a total value of $40 (price per share x amount of shares held). At the time the company completed the 1-for-4 reverse split, you would now own 1 share valued at $40 per share, resulting in a total value invested of $40. The total value invested remains the same regardless of the split.

This corporate action affects all shareholders holding VXX at the time of the split. Due to this event, scheduled orders for VXX were not accepted until after the reverse split was fully processed. Note that this stock’s historical graphs were updated to take the split into account.

If you have questions about corporate actions that affect shares you are holding, we recommend contacting the appropriate company’s investor relations team or visiting the investor relations page on their website for more information.

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