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Cassandra

04/05/11 5:20 PM

#20131 RE: mrsdoubtfire #20129

After a reverse split, the share price equivalent usually drops very quickly.

As an example, let's say you own 1,000,000 shares of XYZ corp that has bottomed out at a share price of $.0001 and become bidless. After a 1 for 1000 reverse split, you own only 1,000 shares which should yield an equivalent share price of $.10. However, those wishing to sell (including the company and/or its insiders) who were not able to sell when there was no bid, now try to sell, which will lower the price further.

The drop is usually pretty rapid and some companies end up back in the triple zeros within a few months or even weeks.

PK companies never do a reverse split to increase the share price. They are done to increase liquidity of stocks that have bottomed out.

I'm sorry, but I don't understand the following question, could you rephrase it?

... what about the reposables,could the withdraw their decision now that the FINRA,FBI are behind them????