Blackout Media Corp (BKMP)

[scorpio70]

Today's BKMP lesson #4...

DEFINITION of 'Reverse Stock Split'

A corporate action in which a company reduces the total number of its outstanding shares. A reverse stock split involves the company dividing its current shares by a number such as 5 or 10, which would be called a 1-for-5 or 1-for-10 split, respectively. A reverse stock split is the opposite of a conventional (forward) stock split, which increases the number of shares outstanding. Similar to a forward stock split, the reverse split does not add any real value to the company. But since the motivation for a reverse split is very different from that for a forward split, the stock’s price moves after a reverse and forward split may be quite divergent. A reverse stock split is also known as a stock consolidation or share rollback.

I believe Mr Winnick said the preferreds and the eventual reverse split(s) would have something to do with correcting the monstrous sized naked short position on this stock.

Not all reverse slpits are bad by any means. Some are beneficial and necessary.

jmo
Mr Pete Barton
scorpio70
(The 'elmira' Oracle)