In what way does an r/s specifically (by itself) h
Post# of 96891
Posted On: 02/16/2016 5:50:46 PM
Re: Euroman-4K #52548
In what way does an r/s specifically (by itself) hurt any current investor? I'd maybe worry if a company didn't have any chance of growth, but that is certainly not the case here.
"A reverse stock split reduces the number of shares and increases the share price proportionately. For example, if you own 10,000 shares of a company and it declares a one for ten reverse split, you will own a total of 1,000 shares after the split. A reverse stock split has no effect on the value of what shareholders own. Companies often split their stock when they believe the price of their stock is too low to attract investors to buy their stock. Some reverse stock splits cause small shareholders to be "cashed out" so that they no longer own the company’s shares." Source sec.gov
"A reverse stock split reduces the number of shares and increases the share price proportionately. For example, if you own 10,000 shares of a company and it declares a one for ten reverse split, you will own a total of 1,000 shares after the split. A reverse stock split has no effect on the value of what shareholders own. Companies often split their stock when they believe the price of their stock is too low to attract investors to buy their stock. Some reverse stock splits cause small shareholders to be "cashed out" so that they no longer own the company’s shares." Source sec.gov
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