Replies to post #29131 on Greene Concepts Inc (INKW)

[sliderulex]

That's an interesting question. I would guess that if you had 1 share, and a company did a 1,000 to 1 reverse split, that you will still have 1 share. Companies probably have procedures for situations like that where the split doesn't work out to some whole number of shares.

[Garyst]

Hey Pat. If this is a Penny stock you are referring to and they are doing a F split..... you will end up with many less shares but at a much higher PPS. It will look good at the moment but of all the splits I have been in most go right back down and end up worthless. There is usually a reason most of these Penny Co's do so and that is to rake in Money. I know from experience that on most splits (whether Forward or reverse) your trading venue charges a $19.99 fee (ET does). Somehow I have some 125 of these in my ET Portfolio over the past 5-7 years that ended up worth a few cents after the split so I just hung onto them and they just sit there. In most cases when a Penny stock does a split you can figure that you have pretty much lost your whole investment.

[WSD]

Hotrod, I've had the same question in the past, but had figured this one out. The answer to this is really dependent on the company. For example Citigroup did a RS last week, and in their documents they actually stated that anyone who has less than 10 shares will receive a dollar amount for those shares at the closing price of the day or something like that. So say you had 1 share, and the closing price was $4.44, you'd get that from the company and it'll show up in your account. On other occasions I've seen situations where if you have less than the RS size two options arise: 1) If its greater than a certain number so say you have greater than 800 shares, you'll still get 1...but say it was under that, you would get nothing.