(Total Views: 256)
Posted On: 01/29/2020 11:26:21 AM
Post# of 7796
Re: Annie Nigma #5752
The split is to reign in the share count. You do not lose dollar amount value when there is a reverse. If the shares are reduced, the value of the shares are increased an equal amount so the dollar value stays the same.
If you have 100 shares valued at $1 a share, that's $100 value.
A 4:1 reverse means you have 25 shares but they are now worth $4 a share so the $100 value stays the same.
Also, the percentage of the company that you own stays the same.
Does that make sense?
If you have 100 shares valued at $1 a share, that's $100 value.
A 4:1 reverse means you have 25 shares but they are now worth $4 a share so the $100 value stays the same.
Also, the percentage of the company that you own stays the same.
Does that make sense?
(1)
(0)
Scroll down for more posts ▼