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04/27/12 12:22 AM

#21940 RE: phillywhiz #21938

lets use .02 price per share for this

you have 120,000 shares @.02 with a market price of $2400

if a reverse split of 100:1 happens you will then have 1200 shares @ $2.00 with a market value of $2400


if they reverse split from these levels it would be massive and the you would lose the effect of having large volume in shares for for instance with a 1,000,000 shares at .01 for every whole penny it goes up you make $10,000

if they reverse split that million with a 100:1 ratio you have 10 shares at a buck and it has to go up a whole dollar to get the same $10,000