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Re: JRoon71 post# 432315

Tuesday, 01/14/2025 8:38:10 AM

Tuesday, January 14, 2025 8:38:10 AM

Post# of 447908
I didn't know or realize that the Nasdaq price deficiency is not lifted immediately after a RS:

A reverse stock split increases a company’s share price while reducing the number of outstanding shares. Reverse splits rarely achieve a lasting solution to the bid price deficiency for struggling companies, ultimately resulting in other deficiencies based on the company’s market value when the company’s stock price sinks to near pre-split levels. Therefore, Nasdaq will wait for the reverse split price to settle in the market before lifting the bid price deficiency.



https://news.bloomberglaw.com/us-law-week/nasdaq-delisting-threat-is-tricky-for-companies-trading-below-1

I guess that is why companies have to choose a large enough RS to make sure that when the stock price gets hammered after the RS that it doesn't fall back under a buck again.
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