A have this from JPC511
When a RS takes place the stock price gets multiple by whatever number the company chooses to reverse split. For example, if a stock is selling for .4 a share. A 100/1 RS will now be selling for $40. Your shares will be divided by 100 as well. 1,000 shares becomes 10.
It's all proportional. The reason is to get the stock listed on a major exchange.
Pre split
.$4 * 1,000 = $400
Post split
$40 * 10 = $400
Your account pre RS will equal the same post RS, meaning if your account value is $1000 pre-split it will be the same post split wich is $1000.
Your account value doesn`t change, only shares do!!!
I hope a tell it right, maybe someone can comfirm this !!
