United States Oil and Gas Corp (fka USOG)

[Hot_Oatmeal]

Random info R/S
When it comes to the question of reverse splits being good or bad for a company's stock price, it is not that hard to tell that it will end in a bad outcome. When you hear of a reverse split happening in a company that you own, you usually go into panic mode and think of all the money you are going to lose and become angry with the company. But before you decide to jump ship and sell your stocks in a certain company that has a split, at least understand and evaluate if you need to sell your position.

A reverse split is a company reducing the amount of shares to increase their stock price. When a split happens, the market capitalization stays the same. It does not change because the market value of the total amount of shares is still the same. All that changed was the amount of shares and the price of those shares. An example of this would be company XYZ trading at 50 cents a share with 20,000 outstanding shares. The company does a 1-2 split and trades at $1 a share with 10,000 outstanding shares. That market capitalization is still $10,000 no matter if the company does a split or not.