A stock split changes the number of shares and the price per share, but does not change your position’s total value. With a reverse split, the number of shares is decreased while the price per share is increased.
Example: RXSF initiates a 1-for-200 stock split (sometimes written as 1:200). You have 100,000 shares of RXSF valued at $.005 per share prior to the stock split totaling $500 in value. After the reverse stock split, you own 500 shares of RXSF valued at $1 per share. Your total position is still worth $500.
When a stock has a reverse split, it always changes its CUSIP ID and may change its symbol too. This means the stock with the old CUSIP and symbol is no longer traded and your shares will be replaced with the new shares as soon as you receive them from the Transfer Agent. You don’t have to do anything except wait for them to update your shares.
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