Reverse Splits.
As I have been reading the recent posts, I have not seen anyone write about a "problem" with Reverse Splits that I have run across.
If you have 289 (example) shares of XYZ and they perform a 1:10 Reverse Split, you will end up with 28 shares at the new price. Problem: what happened to the other 9 shares? They are sold at the pre-split price and that money is credited to your account as cash. You don't have any "say" in this action, it is done without your consent.
No matter how many shares you might have, any "left-over" shares will be cashed out. Reverse Splits usually occur when the price has fallen, so you are losing money most likely.
I had a position in NUGT (3X Leveraged ETF of the Gold Miners Index) which experienced reverse splits since 2011 of 1:3, 1:5, 1:10, 1:10, 1:10, and forward split of 5:1. Now the price has fallen enough to be looking at another reverse split. The ETF will never go to zero, but your position will!
Bob
