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rafunrafun

02/27/21 10:10 AM

#327106 RE: ggwpq #327105

MC = S/O * price, so correlated to S/O

Correct of course.

(A) Currently: 400 million shares @ $7 per share, MC = $2.8 billion

(B) With a 10:1 reverse split, it becomes: 40 million shares @ $70 per share, MC = $2.8 billion

Scenario (A) has 10x more shares. But which scanario has a potential for a bigger buyout?

Answer: they're equal. Hence the # of shares, by itself, is meaningless. What's not meaninglessness is the MC.