• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

What does a reverse-stock split

E

ericboo

Golden Member
If it is a 1 for 10 reverse split. I understand the quantity adjustment, but what is the purpose of such split?
 
To satisfy some exchange standard, i.e. share price has to be above $1 - bad
To bring down the number of outstanding shares, I believe this is done mostly before ipo - okay
 
I suspect the real purpose of such transactions is to increase the revenues of the investment banks & law firms that sell the idea to management.

Ditto stock buybacks, which use cash to buy in shares, thus reducing both cash & stock os from the balance sheet, with the net result of reducing the overall size of the business. Lots of gravy for the investment bankers & law firms that convince management to do it. Advantage to the business firm?? smoke & mirrors.

edited for spelling correction
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top