Pegs. When a company does either reverse splits or forward splits, the chart is recalibrated for those changes in share amounts. When a split happens, it doesn't impact the market cap. So if you have a market cap of $10,000,000 and O/S of 10,000,000 shares and a $1.00 pps. So a company decides to do a 1 for 2 reverse split. So now, there are only 5,000,000 shares. The market cap however doesn't change so it is still $10,000,000. So to reach that market cap with 5,000,000 shares, the pps must be now $2.00. Now not only is the pps reflected with that new pps going forward, it must also be adjusted for all past trading days. If you look at Microsoft's chart for its entire trading time, it will appear it was a penny stock in the early days. That is not the actual case. I think it started trading in the $20 range(just a guess), but due to all its forward splits, the history looks like it once traded in the pennies. So since the 3dicon traded as high as $3.27 back in 2006, a 1 for 35 spilt took place. So to equate what that pps would look like after the split, and for us to hit that number, with todays trading, you would take the $3.27 x 35, which makes it look like we traded at $114.45 in April 2006, when it was really at the time, only $3.27. Splits impact what a pps actually traded at in the past. Its more based on percent ownership of the company.
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