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viking86

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viking86

Re: jay_lim post# 17132

Sunday, 08/26/2012 10:04:02 PM

Sunday, August 26, 2012 10:04:02 PM

Post# of 163718
jay: seems like Treit overlooked your q so allow me to answer for him.

If the r/s is 2:1, every 2 existing shares (say @50c each) will be "split" into 1 new share @ $1 each. The value of your position is unchanged. But if the r/s ratio is 4:1 then if you had 100,000 shares before, you will have 25,000 shares after the r/s but at 4x face value.
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