The most common reason is to meet a requirement from a stock exchange to avoid having its shares delisted. Why do companies do reverse stock splits?Ī company does a reverse split to increase its share price. To be perfectly clear, a reverse stock split doesn't change the overall value of your investment - at least not all by itself. That will leave your smaller position still worth the same amount since 100 shares multiplied by $10 per share equals $1,000. Immediately after the reverse split, the stock price will rise tenfold to $10 per share. If you own 1,000 shares - worth $1,000 at current prices - you'll get one new share for every 10 old shares you own, or 100 new shares.
For instance, say a stock trades at $1 per share and the company does a 1-for-10 reverse split. Simply divide the number of shares you own by the split ratio and multiply the pre-split share price by the same amount. The new share price is proportionally higher, leaving the total market value of the company unchanged.Ĭalculating the effects of a reverse stock split is easy. A reverse split takes multiple shares from investors and replaces them with fewer shares. Reverse stock splits work the same way as regular stock splits but in reverse. Continued abuse of our services will cause your IP address to be blocked indefinitely.What does a reverse stock split mean to an investor?Ī reverse stock split happens when a corporation's board of directors decides to reduce the outstanding share count by replacing a certain number of them with a smaller number. Please fill out the CAPTCHA below and then click the button to indicate that you agree to these terms. If you wish to be unblocked, you must agree that you will take immediate steps to rectify this issue. If you do not understand what is causing this behavior, please contact us here. If you promise to stop (by clicking the Agree button below), we'll unblock your connection for now, but we will immediately re-block it if we detect additional bad behavior. Overusing our search engine with a very large number of searches in a very short amount of time.Using a badly configured (or badly written) browser add-on for blocking content.Running a "scraper" or "downloader" program that either does not identify itself or uses fake headers to elude detection.Using a script or add-on that scans GameFAQs for box and screen images (such as an emulator front-end), while overloading our search engine.There is no official GameFAQs app, and we do not support nor have any contact with the makers of these unofficial apps. Continued use of these apps may cause your IP to be blocked indefinitely. This triggers our anti-spambot measures, which are designed to stop automated systems from flooding the site with traffic. Some unofficial phone apps appear to be using GameFAQs as a back-end, but they do not behave like a real web browser does.Using GameFAQs regularly with these browsers can cause temporary and even permanent IP blocks due to these additional requests. If you are using Maxthon or Brave as a browser, or have installed the Ghostery add-on, you should know that these programs send extra traffic to our servers for every page on the site that you browse.The most common causes of this issue are: Your IP address has been temporarily blocked due to a large number of HTTP requests.
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