Posts Tagged ‘bad’
Stocks Reverse Split Good Or Bad
May 28th, 2010 | Author: J. Howard
Is a reverse stock split good for me and what is it?
What is a reverse stock split? If I were to invest into a company now, and later this year they decide to do a revese stock split, is that good for my share holdings or bad? Please explain and give an example, thanks.
It is when a company wishes to decrease the amount of stock they have out. So they do a 1 for 5 or something like that.. If you have, say, 100,000 shares then you would end up with 20,000 shares on a 1 for 5 reverse stock split. Usually the price per share goes up but it may just be a temporary increase though as the price drops again.
Could be good, could be bad…..That’s why it’s called gambling and not a sure thing.
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