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Re: vinvinder post# 847

Wednesday, 03/17/2021 12:33:54 PM

Wednesday, March 17, 2021 12:33:54 PM

Post# of 895
Logic for RS/FS

This is a smart tactic some companies use. It serves two purposes.

1. Eliminates all small share lot holders. Ie if you held 499 shares, you are now no longer a holder on the initial RS.
2. Manages to cancel shares off the share structure. All the sub 499 share holders lose their shares and they are eliminated from the share count.


upon the FS, those with strong initial holdings, are again made whole.
So 500 shs ->1 Sh [RS] ->500 shs [FS]

https://www.finweb.com/investing/the-reasoning-behind-the-reverseforward-stock-split.html




vinvinder Saturday, 03/13/21 09:47:30 PM

Why? This Doesn't make sense to me.