Hypothetical question, possibly really dumb…but
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Posted On: 11/17/2022 9:24:59 PM
Hypothetical question, possibly really dumb…but here goes…
If a reverse split ever occurred (not predicting one), would the 300 million shares newly approved also get reversed?
Say our shares went from 5 to 1 in a reverse split, would 300 million also turn into 60 million?
The reason the question came to my mind, is another poster (maybe a basher) a week ago or so said we should expect a r/s so the company can raise funds at a higher share price.
But I don’t see how that would matter if the 300 million got reversed to 60 million as well. Then they’d sell 1 share for 5 times the cash as 5 shares before.
Like I said, probably a really dumb question. But I’ve seen corporate switcheroos before. Asking for a friend…
If a reverse split ever occurred (not predicting one), would the 300 million shares newly approved also get reversed?
Say our shares went from 5 to 1 in a reverse split, would 300 million also turn into 60 million?
The reason the question came to my mind, is another poster (maybe a basher) a week ago or so said we should expect a r/s so the company can raise funds at a higher share price.
But I don’t see how that would matter if the 300 million got reversed to 60 million as well. Then they’d sell 1 share for 5 times the cash as 5 shares before.
Like I said, probably a really dumb question. But I’ve seen corporate switcheroos before. Asking for a friend…
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