All American Pet Company Inc (AAPT)

[Leirum]

Wondering what is so complicated about the understanding of an R/S.

From a capitalisation Point of view nothing is changing and from an Investor Point of view neither.

An example: On the NYSE stocks below $ 5.-- cannot be purchased by the big Hedge-Funds and by some big mutual funds. So when a stock falls below - like it happened during the 2008-2009 - crisis they even had to sell. At that time as 1 example Citygroup decided for a R/S to lift the stock back above this Benchmark to avoid disaster.

With the new rule from OTC having a min. bid of 0.010 a lot of companies will be forced for an R/S to get back to Business. So in case somebody has 1 Mio AAPT at 0.0015 = $ 1500.-- with a R/S of 15 the Investor would have 66.667 Shares at a Price of 0.0225 = $ 1.500.--
Cannot see the Problem for the Investor.