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Re: fred2207 post# 72773

Wednesday, 05/17/2017 1:05:30 AM

Wednesday, May 17, 2017 1:05:30 AM

Post# of 84886
Most reverse splits are done so that a company with too many low value shares can then increase the number of issued shares at the higher price in an attempt hide dillusion. This is obviously bad for shareholders. Another scenario is not for dilution but to prevent delisting from an exchange. I believe that a security on the Nasdaq cannot trade below $2.00 for 60 consecutive days without getting put on notice. They can do a reverse split to prop up share price and prevent this, the sign of a company going down the drain usually. In USMJ's case if they become profitable it doesn't matter other than to consolidate shares to a respectable number.