RE:RE:RE:Reverse split A. Typical steps in a reverse stock split are:
1. Company management proposes a reverse stock split to the company's board of directors.
2. The board of directors votes in favor of the reverse split, which is subject to the approval of shareholders through a vote. Note: This was done the past few years BUT not/not this year and no one on any board or Discord I've seen has been supportive of a RS. Perhaps take the time to read through the past couple of years posts to get a sense of posters interest in such an initiative and you'll understand the "cracking up" gifs.
3. The company publicly announces the split, as well as detailed information, such as the split ratio and the date of the split.
4. On the split date, the company cancels its current outstanding shares and distributes new shares to existing shareholders in proportion to the amount of shares owned prior to the split.
B. Benefits of a Reverse Stock Split
1. Boost image: The primary purpose of a stock split is to increase the share price, which is often done to gain or maintain favor among influential investors.
2. Prevent stock exchange delisting: A reverse stock split can be done to increase the share price to meet the minimum price requirement of the stock exchange.
C. Disadvantages of a Reverse Stock Split
1. Loss of liquidity: Since a reverse split reduces the number of shares available in the market, the split can harm liquidity, which can then negatively impact share price.
2. Negative perception: Although a reverse stock split can help to boost a stock's image among investors, reverse splits are often received as a negative sign that the company is struggling.
Note: In this case I'm sure 90+% of investors perceive a RS negatively.
C. Bottom Line
A reverse stock split reduces the number of a company's outstanding shares and proportionally increases the share price. While a higher share price can help to boost a company's image, reverse splits are generally received by investors as a potential sign of fundamental weakness.
Lvl10spacecadet wrote: I don't know why you're laughing are profit margins are down YOY we're forecasted in 5 years .28 cent by chart analysis were all a strong sell on Barchart trading view and my own chart analysis screams sell its a honnest question I don't know why you think it's funny ?