Worlds Inc (WDDD)

[LouisDesyjr]

Reverse stock splits do usually decline

Many investors do view a reverse stock split as a bad event, and most of the time a reverse stock split does accompany a decline in the stock price.

Part of the reason is that the company is usually already have a number of other problems, so the company doing a reverse stock split does not help since it just allows the shares to fall from a higher price.

Other parts of the reason are that a number of investors, who were happy to trade larger blocks of shares at a lower price, now have that cut down by the smaller amount of shares that are at a higher price.

While it should not matter if one is buying 20,000 shares at $1/share verse 1000 shares at $20/share, you will find that people will be less careless trading a stock when it is at a higher price per share.

Louis J. Desy Jr.