Replies to post #808 on Small Business Development Group Inc (SBDG)

[Z-Man15]

Depends... if the stock does up after a reverse split. 99% of the time they won't.

For example, lets say VRNI does a 1-500 R/S from .0004. You own 1 million shares. After the reverse split, the PPS is at $0.20 (will it open there, nobody knows... market makers will decide that [usually will open lower at like $0.10]). Now, you have 2000 shares (1 million shares / 500). Most likely, the stock will be brought down by bid sellers. So now lets say the PPS corrects at $0.01. Your $400 investment worth $20 now.

What don't you get about dilution?