That may be true for a normal RS but not when the percentage of ownership goes from mostly the common shares which are included in the Market Cap to almost entirely Preferred shares which are NOT included in the Market Cap. The Fully Diluted Market Cap will go up almost 20 times in a 20 for 1 RS split because the preferred B share holders will have taken almost all the ownership of the company. The market will quickly adjust for that discrepancy and it is not going to matter 1 bit how stable the share price was prior. The actual value of the company doesn't go up 20 times by transferring ownership from common shareholders to insiders.
News 
Market Data 
Discover 
AI
