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Re: Paul Wall post# 5482

Wednesday, 05/11/2016 1:26:45 PM

Wednesday, May 11, 2016 1:26:45 PM

Post# of 13983
When a reverse split is done the smaller shareholders that cannot hold up to the share are forced out you can reverse split a stock down to 1 share if you control 100% of the stock but you don't have to do that if you can control a big bulk of the stock you can reverse split a stock all the way down to a point where all these smaller shareholders who now do not add up to the value of a share will be forced out and handed their money. Let's say a company has 100 shares and you own 80% of the stock, you can turn much stock in a reverse split into 20 shares anybody who did not hold enough stock in the previous share structure would be forced out, so let's say you had 3 shares of the 100 share stock. Controling 3%. When the reverse split happened your 3 shares now would not equal a single share, lets say the stock price was at 100 a share when this happened, you got your shares pre merger at $1 a share. You would be out of the stock and get $300 dollars with $297 in profit well profit before gross margin lol but gross margin is a complete other subject that seems to be lost by many hahaha. Someday I will dive into that and explain it as I seem to have to do this to all of my employees on a regular basis. Lol but no worry new investors you will make a buttload of money.