a company that I hold some stock in is planning a reverse stock split in Oct 2007. Should I be worried?
a company that I hold some stock in is planning a reverse stock split in Oct 2007. Should I be worried?
7 Sep
9:00 am on September 7th, 2010
Reverse split reduce the number of share you will hold after the reverse. The dollar value will remain the same but the number of shares will be reduced! ie: 1:10 reverse, if you hold 1000 shares you will end up owning 100 shares at the same total dollar amount! ps. these are not normally a good thing….they just pump up the stocks price to make it look better!
9:48 am on September 7th, 2010
A reverse stock split is just that you will lose half of your shares
10:42 am on September 7th, 2010
IT IS THE OPPOSITE OF A NORMAL STOCK SPLIT. A TWO FOR ONE SPLIT MEANS YOU WILL SUBSEQUENTLY OWN 2 SHARES FOR EACH 1 YOU HELD PRIOR TO THE SPLIT.
A ONE FOR TWO SPLIT MEANS JUST THE REVERSE.
WHILE THERE IS NO CHANGE IN THE OVERALL VALUE OF THE COMPANY, IT DOES INDICATE SOME CONCERN TO ME THAT A COMPANY FINDS IT ADVANTAGEOUS TO DO A REVERSE SPLIT.
10:44 am on September 7th, 2010
Spilts are meaningless from a value prospective. Whether you have 100 shares at $1 or 10 shares at $10 it’s still $100. However companies who need to artifically bump up their stock price do concern me. There are legimate reasons for doing this but all to often it’s a bit scary when this is the best move a company can make to improve it’s price.