That's at the very moment the R/S occurs. It's a mathematical adjustment with the before and after being equal. It's what happens to the stock after the adjustment is made that destroys the stock price because of the reason the R/S was done.
I've been witness to many R/Ss and I can't think of an occasion where the reason has been good.
Ok beerholder, obviously you might be new to penny stocks. There is absolutely nothing good about a RS in the OTC world, yes your shares are reduced and your investment stays the same. HOWEVER it would take a miracle for you to exit the play without losing money immediately after a RS, 99.99% of the time before the market even opens post RS the bid/ask prices are always below the post RS pps
I've never seen a r/s that turned out good. In theory what you say is true, but what actually happens is quit the opposite. OTC or big boy boards, doesn't seem to matter. It's usually to dilute or stay listed on a certain exchange. And sometimes it just gets shorted to death knowing full well the direction will be downward.
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