You are the one who needs to take a lesson in how
Post# of 96879
Just like a R/S (stands for Reverse Split) doesn't require anything but a vote. One day you have 10 shares and they vote in a 2 for 1 reverse split and then the next day you have 5 shares. NO MONEY CHANGES HANDS!!!
If you want to reduce the O/S (stands for Outstanding Shares) the company has to buy them from someone. They can buy them on the open market just like you and me or they can work out a deal with someone who owns shares as long as they don't break any trading rules. THEY PAY MONEY FOR THE SHARES!!!
If a company wants to raise some capital they can makes some of the A/S part of the O/S and sell those shares. They RECEIVE MONEY FOR THE SHARES!!!
And YES!! This IS how it works for the A/S...
Quote:
You just vote and half the shares go "poof".
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