1) you said to do Due Diligence so as to not get embarrassed. Did you look for the agreements? They usually appear as attachments and in them you'll see if there is a clause.
You'd be looking for "anti-dilutive" clauses where they get protected in a r/s. If they have one it suggests for all the other shareholders the reverse will be even steeper so that they can wipe out more shares.
2) executives will do a couple of things, A) issue themselves Preferred Stock with has a built in conversion that is usually greater than the reverse split and B) give them voting rights of 100 to 1,000 votes for each preferred share they own. This will increase their control (via the voting rights) or C) they'll issue stock via an employee plan, bonus at the signing of an employment agreement, shares as part of a performance award...this list is endless
The selling point to the shareholders is "hey it's not dilutive!" which is true until they convert after the reverse. And to shareholders they will say, "we're uplisting and as long as your investment is protected...why would you care". That's the selling point, every single time.
Summary; you're falling for every rookie mistake in the book, you're wanting to apply "logic" to the scenario you want, not to the scenario that benefits the insiders.
This is the OTC and this isn't my first rodeo. If you think it doesn't happen. That's your delusion, it should not be accepted by anyone who's been trading pennies for decades...so hold on to your opinion...hope you have the ability to acknowledge how wrong you were when the time comes.
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