Posted On: 02/12/2016 1:37:06 PM
Post# of 96891
Example:
You have 1000 shares of company A (assuming you own 100%), price per share is 1$ -> market valuation 1000x1 = 1000$.
Now they do a RS 10:1, that means you are given 1 share in exchange of 10 shares.
Your current number of shares is 100, but the price per share surges to 10$, because the valuation is still the same -> 100x10 = 1000$
You have 1000 shares of company A (assuming you own 100%), price per share is 1$ -> market valuation 1000x1 = 1000$.
Now they do a RS 10:1, that means you are given 1 share in exchange of 10 shares.
Your current number of shares is 100, but the price per share surges to 10$, because the valuation is still the same -> 100x10 = 1000$
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