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Re: scoop9 post# 35548

Saturday, 08/20/2016 5:21:32 PM

Saturday, August 20, 2016 5:21:32 PM

Post# of 97093
Nice try - but YOU are wrong!

The additional issuance of stock enabled by a reverse split has DIRECTLY affected the value of my shares.

As new shares are added to the aggregate,they reduce the value of the existing stock. Dilution:"the action of making something weaker in force, content, or value".



There isn't any additional issuance of stock by a reverse split. If you had a share that was worth $1 dollar and there was a reverse split of 10 to 1, you now one 1 $10 share for every 10 $1 dollar shares you previously owned.

Irrespective of other issues,share issuance in and of itself kills value.


Of course issuing more shares reduces existing shareholder's share in the company - dilution. Market cap divided by more shares. But this has nothing to do with a reverse split. Shareholder's retain the same portion of ownership after the reverse split as they did before.

I can't tell if you really don't understand, or not. After a reverse split, a particular share holder's percentage ownership in the company does not change. If the company issues new shares, existing shareholder's share for the company has been reduced. But issuing new shares and reverse splits are orthogonal - they are totally unrelated. Can the two be combined into one change, of course, but but when they are not combined the are totally separate.