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Posted On: 09/21/2017 12:37:33 PM
Post# of 75040
A reverse split can be either good or bad depending on its purpose.
A stock trading at $.10 per share that does a 1 for 10 RS will have a value of $1.00 per share at the time of the split. Thats a fact. Now the purpose determines weather its good or bad. To go on a major stock exchange would tend to raise the price over time.
People tend to panic because they have no idea for the reason. Yes there are bad reasons for the split. A failing company that is milking the stock to stay alive is not good.
A stock trading at $.10 per share that does a 1 for 10 RS will have a value of $1.00 per share at the time of the split. Thats a fact. Now the purpose determines weather its good or bad. To go on a major stock exchange would tend to raise the price over time.
People tend to panic because they have no idea for the reason. Yes there are bad reasons for the split. A failing company that is milking the stock to stay alive is not good.
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