Sunday, May 14, 2017 5:33:19 PM
noun
a reduction in the number of a company's traded shares that results in an increase in the par value or earnings per share.
If a reverse split does occur, the amount of shares decreases in proportion to the adjusted price of the PPS. The market cap would be unchanged until traders react. Yes ,an RS usually causes the PPS to drop, especially in the case of dilution machines like DRYS, but if an RS is offset by news or increased investor sentiment, an RS does not AUTOMATICALLY guarantee a future drop in share price/market cap. If an RS does happen, it is likely that investors will over-react and that presents an opportunity to buy cheapies near the new bottom. However, if the number of AS increases as a result of a board meeting decision, that would be much more harmful than a RS, because that would effect the market value immediately to the downside.
Am I wrong? Did I miss something?
North Bay Resources Announces Composite Assays of 0.53 and 0.44 Troy Ounces per Ton Gold in Trenches B + C at Fran Gold, British Columbia • NBRI • Jun 18, 2024 9:18 AM
VAYK Assembling New Management Team for $64 Billion Domestic Market • VAYK • Jun 18, 2024 9:00 AM
Fifty 1 Labs, Inc Announces Acquisition of Drago Knives, LLC • CAFI • Jun 18, 2024 8:45 AM
Hydromer Announces Attainment of ISO 13485 Certification • HYDI • Jun 17, 2024 9:22 AM
ECGI Holdings Announces LOI to Acquire Pacific Saddlery to Capitalize on $12.72 Billion Market Potential • ECGI • Jun 13, 2024 9:50 AM
Fifty 1 Labs, Inc. Announces Major Strategic Advancements and Shareholder Updates • CAFI • Jun 13, 2024 8:45 AM