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Re: legaltips post# 6508

Tuesday, 06/28/2011 9:45:59 AM

Tuesday, June 28, 2011 9:45:59 AM

Post# of 75926
That's not how a reverse split works. Per your example

1000000sh X .10 = 100,000 dollars

R/S 1:10

100000sh X 1.00 = 100,000 dollars

The value of the stock actually goes up in relation to the split amount so the overall value remains the same.

The reason value goes down after a R/S is because a great deal of times after a R/S happens dumping occurs, as it is perceived veryh negatively by many investors. It will only maintain it's value if the perceived value of the stock in question is where it is trading.

http://www.investopedia.com/terms/r/reversesplit.asp#axzz1QZu98sNX

SNDY has plenty of potential, even after a R/S, you just have to know when to play and when to fold.
Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y