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Butthais

11/17/10 9:18 AM

#43169 RE: Avatarghost #43165

No, it isn't good.

Say you have 1000 shares, and a 1/10 reverse split occurs.
You now only have 100 shares, however, the stock price is driven up to 10x that price. It never stays there though, because it frightens everybody and mass selling occurs. Usually if a stock needs to initiate one of these they aren't in a good position anyway.