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M_T_Pockets

08/21/12 1:08 AM

#53797 RE: Zorax #53788

Your post clearly said:

Your 1000 shares equals .10 for 100 dollars.



Now 10 cents for $100 dollars is incorrect.
The new share value will be 5000 times the old share value.
And 1 million shares will be worth 200 shares at a 5000 to 1 split.
It isn't that complex to calculate.
Using actual figures, the contention that:

Market cap is not part of the equation.


is the erronious part.



M_T_Pockets

08/21/12 1:58 AM

#53828 RE: Zorax #53788

And by the way, check out the stock on board that you are a moderator on, that CGFIA has as a merger target, and look at the way the shares were priced after the stock split occurred at American Sierra.
There is a real life example of how the new shares are priced the days after a stock split.
It is obvious that market cap DOES play a part in the price structure. Why would it be any different at CGFI?

Just keeping the information real and simply clear.
$CGFIA