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My question is this: When a company does a reverse split (let's say 1/1000) does the O/S or A/S reverse split as well? Or both? I always hear folks talking about certain stocks and how after the R/S the float will be lower and blah, blah, blah. I'm sure I've seen stocks R/S and the share count remain the same? Didn't CTTJ go to CYPW, do a 1/10,000 R/S and then announce they were reducing the A/S by 300 million? Just wondering if it is mandated by law or just assumed. Thanks.
-------------------- There are those for whom such life makes all other existence seem tame! Posts: 52 | From: Alabama | Registered: Feb 2006
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posted
R/S are bad news no matter how you slice it. After the split people bail out and the price drops like a brick. And with fewer shares in your pocket as well. So, you have fewer shares worth less money. Get the picture? Any stock can pull a R/S but it's usually the micro-caps that are notorious for same. Some micros R/S every coupla months. Others R/S every year or two. To get a good a broader picture go to IHUB's R/S repeat offender list. Their site gives you a good idea of which stocks R/S most often and when. I avoid repeat offenders like the plague. So should you.
Posts: 669 | From: Gouldsboro, Pa. | Registered: May 2006
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