My opinion, a reverse split is most often associated with a company that still needs to raise additional revenue and will initiate a reverse split to cut down the number of outstanding shares so that additional stock can be issued for sale. Another option is where a reverse split might be used, to increase the PPS with a a reverse split (example: a stock at .trading at $0.50 PPS with a 10-1 a reverse split would push the PPS to $5.00 to setup a potential uplisting later or to keep the company in SEC compliance for stock pricing requirements).
NOW a share buyback most often occurs when a company has large sums of surplus cash and wishes to draw down the total number of outstanding shares and eventually authorized shares. This most often is recognized as a STRONG company and bodes well for share holders.
Thoughts/Comments????????
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