Obviously you failed again to see my point. You need a round lot for most companies to keep you as an investor otherwise they will require you to buy enough to make 100 shares or sell your shares and send you the proceeds. That's why it matters. Look it up, it's all there. Companies cannot afford to send out proxy's and annual reports to shareholders who only have a couple of shares. You'll need 20000 shares pre split (100 post split) to maintain your shares.
"A reverse stock split not only reduces the number of shares but also reduces the number of shareholders. For every shareholder, there is a minimum limit on the no. of shares he/she should hold at any time. When a reverse stock split happens the number of shares on the market reduces and the share price increases. In the same scale the no. of shares held by all investors reduces.
But those shareholders who are having less number of shares than the minimum limit are forced to leave the shares by taking the cash equivalent of the total share value they were holding during the reverse split."
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