Old but interesting article. "A CNBC report revealed that most of the recent reverse splits have resulted in lower adjusted prices during the first few days after the event. This makes sense. It shakes out the speculators. The penny-stock gamblers go away. However, if the stock is truly valuable, the higher price eventually will open the door for greater institutional investing and perhaps even wider analyst coverage."

http://www.fool.com/investing/general/2009/07...plits.aspx

We now know the author was proved wrong about AIG.