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Re: James1975 post# 53866

Saturday, 02/29/2020 1:04:10 AM

Saturday, February 29, 2020 1:04:10 AM

Post# of 54143
You are being completely irrational. If you had a reverse stock split at 100:1. You would receive 1 share for every 100 shares you own. So if you owned 1,000 shares at 50 cents each before the split, you would own 10 shares at $50 each after the split. The value of your stock was $500 before the split (1,000 shares at 50 cents each = $500) and $500 after the split (10 shares at $50 each = $500). It doesn’t matter if the split is 100:1 or 10,000:1, the end results would be the same. A reverse stock split causes no change in the market value of the company or market capitalization because the share price also changes thus causing no change in the stocks actual value.
The only possible change could be if you had say 50 shares within a 100:1 split thus forcing the company to cash you out by paying you the value of your 50 shares. Even then your stock value still is the same. How do you “reduce anything you have to nothing in a reverse split”, when logic proves that any split ratio only flips the numbers describing the market value (without actually changing the market value)? Your claim is illogical.