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Tuesday, April 16, 2024 3:48:16 PM
Here read and learn: Remember 16MILLION IN DEBT trying to sell some beer and fish sticks.
Criticism of a Reverse Stock Split
A reverse stock split is terrible because it can be a sign of trouble for a company. If a company is struggling financially and decides to do a reverse stock split, this could be an attempt to hide financial problems.
A reverse stock split is sometimes done to hide financial problems. If the share prices of your favorite companies drop substantially over time and you want to repurchase them at their previous high price, you may need more money than you have on hand—and what better way to raise capital than by conducting a reverse stock split?
Reverse stock splits can signal issues with how the company is being run or managed. In some cases, this could indicate fraud or other illegal activity on the part of management or board members; if that's happening at your favorite companies (or those that you might invest in), then these shares might not be worth buying anymore!
Should I sell my stock before a reverse stock split?
Selling before a reverse stock split is a good idea, but selling after the reverse stock split is not.
Since you can sell before and after a reverse stock split, selling during one is optional. The main advantage of selling before the reverse stock split is that you don't have to wait around for it to happen. However, if you want to make more money by holding onto your shares until they've risen in value again (after they've been divided), you may want to sell after the reverse stock split instead.
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