Accounting gimmicks like reverse splits almost always f*ck small fry investors out of a chance to secure transformative income not easily obtained by working 40 or more hours weekly at a conventional job. So if an investor had 100,000 shares and thought he had a chance to pay off his house when the stock price bloomed, a 1:20 reverse split would pretty much kill that...And if they held 20K shares a fractional split like that would leave him with a paltry total of a thousand shares...I think I'd lose my mind...But instead of growing the stock organically bulletin board companies do cheap corner cutting stuff like that all of the time...
Reverse splits usually mean a company's going to go broke. it's a desperate attempt to stay afloat. Companies don't do that so they can gain an uplisting because they would be shooting themselves in the foot. If they're all that and a bag of Doritos they don't need to reverse split they'll eventually reach a share price that'll warrant them uplisting. Uplisting means that you're all that and a bag of Doritos that you're successful and profitable. unfortunately lots of companies are getting listed and their pieces of crap. Theoretically if a company gets up listed that's a great thing that means they're successful have a great business plan they've graduated and moving forward they might do a forward split which would be even better example IBM. A reverse split is never good it means the companies last-ditch attempt before bankruptcy 99 times out of 100. If the guy was saying that you know it doesn't make any sense really. TTYL XOX
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