it's not about protection it's more of price stability. A exceedingly large float pushes away many investors until the shares, not the company, show healthier stability. Its common to have a great biz model but a really messed up shares structure(pps) Look at sirius satellite...same thing. Just too many damned shares available. If sire did a 20/1 r/s it would not only stabilize the pps but the pps would increase in price drastically. imo, of course.