Posted On: 09/02/2015 6:06:03 AM
Post# of 12259
Your market cap stays the same in an RS.
If your shares are worth $1000 @1 (5 billion) then they would be worth $1000 @5 (1 billion). You have described a 1 for 5 RS. The total value never changed.
Even though you would have 5 times less shares in your example, the shares would be worth 5 times more.
The math is not hard.
If your shares are worth $1000 @1 (5 billion) then they would be worth $1000 @5 (1 billion). You have described a 1 for 5 RS. The total value never changed.
Even though you would have 5 times less shares in your example, the shares would be worth 5 times more.
The math is not hard.
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