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Re: HighGround post# 216441

Thursday, 03/04/2021 3:16:14 PM

Thursday, March 04, 2021 3:16:14 PM

Post# of 278187
No. You’re still not seeing there problem with your logic. It’s completely false. A tenfold appreciation in the $.10 stock (derived from news or whatever) would result in the EXACT SAME TENFOLD APPRECIATION were the exact same news or whatever applied to the post-split (50:1) $5.00! stock!!! The stock in that case would go from $5 to $50 per share and you’d have the exact same amount of money. What you’re referring to is a psychological effect of starting with pennies and having a big multiplier. It’s simple math. The big multiplier gets applied to both the pre-split price and the post-split price because the fundamental basis for the share price increase is the exact same news applied to the exact same company with the exact same financial prospects. It’s simple math applied to economics. You can’t have it both ways. To argue that the $.10 per share stock would have a larger percentage move than the $5.00 stock (when both stock bundles represent the exact same percentage of ownership in the company) is ludicrous and just flat out wrong - empirically. So once again, will someone PLEASE EXPLAIN TO ME WHY SOME PEOPLE ARE UP IN ARMS OVER A REVERSE SPLIT WHEN DOING SO SIMPLY DECREASES THE NUMBER OF SHARES WHILE CONCOMITANTLY INCREASING THE SHARE PRICE? There’s no net gain or loss in company value.
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