stockrule. many times a company will do a reverse split to bring down their PPS. With that the pps also comes down (and those holding get more shares) which makes the pps more attractive to people. Lets say a company like Apple that is trading in the $700.00 range..... At some point the pps gets so high that they decide to do either a reverse split or a buyback. The bottom line in why these happen from the companies theory its to bring the pps down so as to bring in more investors. Those that hold their shares when these "Splits" happen make out quite nicely usually especially if the the stock is in demand. Most times the movement is right back up after a split.
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