Intellect Neurosciences Inc. (fka ILNS)

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Here's how a reverse split works. A company divides the number of existing shares by some amount, say for the sake of argument, they divide by 10. So if the company had 100,000,000 shares (one hundred million) and they do a 10:1 (also seen as 1:10) reverse split, the company divides their 100 million shares by 10, and now the company has 10 million shares. And if you had 10,000 shares, you would have your shares divided by 10 also, so you now have 1,000 shares. Everyone's shares are divided by the reverse split factor, in this case 10.

At the same time, the share value (pps) increases by the same factor. So if the share value were 0.10 at the time of the reverse split, the new share value would 1.00. Your new share count of 1,000 is still worth the same as your old share count of 10,000 because while the share count decreased, the share price (pps) increased by the same amount, thus creating equality. But as often happens in a reverse split, the share price (pps) will quickly drop days or weeks after the reverse split, so that the value of your account is less than what it was before the reverse split. And this dropping in pps after the reverse split is what people hate.