good statement on rs Reverse Splits. In orde
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Reverse Splits. In order to meet NASDAQ’s minimum share price requirements, many small cap stocks will conduct a reverse split with the post reverse split share price being the price the stock exchange will consider. Its important to remember that reverse splits are actually a sign of good things for companies on the way up, but tend to be a sign of bad things for companies on the way down. For example: Reverse splits tend to be associated with stocks trying to prevent themselves from being delisted from a stock exchange.