Citigroup Planning Reverse Stock Split The recent rash of creative financial accounting continued Thursday, as embattled banker Citigroup ( C) said it is planning a reverse stock split, which would at least temporarily boost the company's floundering stock price. Two weeks ago, Citigroup shares "broke the buck," sliding under the $1 per share level. Since then, the stock has more than tripled after the company said in an internal memo that it turned a profit, excluding write-downs and other items, in January and February of this year. Citigroup is planning to swap common stock for up to $27.5 billion of its preferred shares, priced at $3.25 per share. The U.S. federal government would match up to $25 billion of the proposed exchange. Citigroup said it will also seek shareholder approval to perform a reverse stock split, while considering seven possible exchange ratios. These ratios cover a giant range, from a tiny 1-for-2 split all the way up to an enormous 1-for-30 split. The company said the split could happen before June 30, 2010. Citigroup currently has 5.5 billion shares outstanding, and the proposed exchange could increase the number of shares to between 13 billion and 21 billion, depending upon how many investors buy into the program. Companies often use reverse stock splits like these to boost very low share prices, albeit temporarily. Citigroup has so far accepted about $45 billion from the government's Troubled Assets Relief Program, and has lost around $37.5 billion in the last five fiscal quarters. More of the fancy footwork coming from the Citigroup team that has been there through the majority of the financial "minestrone". Reverse stock splits do not change the fundamentals of anything. It's just a change in the numbers and nothing else. We would still be extremely cautious with the shares here. Citigroup is not recommended at this time, holding a Dividend.com Rating of 2.3 out of 5 stars.