Replies to post #3785 on IMD Companies Inc (ICBU)

[Ikimota]

That is my thinking as well.

[Oliverpaintball51]

Yea i dont see how a RS is bad.



The shares are decreased by X (divided by) and the price is multiplied by that same X


i.e. a 500 : 1 r.s. on a stock trading for .01 right now

You own 1,000 shares at .01 a pop total market value = $10

500: 1 r/s

you now own 2 shares worth $5 each ' total market value = $10


I fail to see how this is bad.

it's just changing #'s the proportions and ratios remain the same


i.e. 30/1000 is the same as 6/200

Just diffferent #'s