OK Boys and Girls
The Company X has 1,000,000 shares. ($50,000)
Current stock price = 0.05 cents a share.
I own 50,000 shares of Company X stock at 0.05 cents a share. ($2,500.00)
Company X has a 20 to 1 stock buy back at 0.05 cents.
Company X now has 50,000 shares. ($50,000)
New current stock price = $1.00 a share.
I now own 2,500 shares of Company X stock at $1.00 a share. ($2,500.00)
The problem is if Company X goes to $2.00 I have $5,000.00
If I had 50,000 shares at $2.00 a share it would have been $100,000.00
Now the company can sell more shares to investors at $1.00 per share.
