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Re: USSilverBug post# 7652

Friday, 04/29/2011 9:29:30 PM

Friday, April 29, 2011 9:29:30 PM

Post# of 17231
From a mathematical perspective a reverse split should make no difference. But in reality it often leads to a real hit to the stock's value. Because after the reverse you often see new issuance of shares at the higher price diluting the stock and reducing the percentage of shares owned by the little guy. If they want to bring down the number of shares, they can keep bringing in the profits and buy back some of the stock. That is the way to increase shareholder value, not by reverse splitting the stock.
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