What do they really mean and what are the advanteges and desavanteges? Can someone explain, Please!
Thank You.
Posted by VNGNTN1 on :
M If you have a$100 stock fewer people will invest. A FORWARD SPLIT 3:1 will reduce the "perception" ( not the value to $33.33 - - - - - - - - - - - - - - - - - - - - - - IF You have a stock@$.50 Large investors and others will consider this"junk" A REVERSE SPLIT 10:1 will increase a price of the stock to $5.00( not junk) - - - - - - - - - - - - - - - - - - - - - - So Far NOTHING has changed except perception, but an increase in the stocks intrest may increase. PLEASE realize this occurs becuase millions of investors DON'T pay close attention to Fudamentals and the stock will "SOAR" on emotion. This is the same rationalization the created the "tech bubble" in the 90's VAN
[This message has been edited by VNGNTN1 (edited February 09, 2004).]
Posted by mamboking on :
So, in both cases is good. I just wanted to confirm.