So much fabricated rubbish The questions being asked are old and the correct answers are ageless, so why are so many going out of their way to create new and convoluted ones?
Are there investment companies that have a fixed minimum requirements for potential investments?
Yes many of the larger houses as part of their funds guidelines as set out in the funds prospectus will not invest in companies that do not meet one or more of the following.
a) Share price $5 or greater
b) Trades in good standing on a major exchange
c) Has made regular dividend payments to it's shareholders for a minimum of 1 year
d) Is listed on a recognized index
In addition to the above, the company's business can not violate the funds ethical guidelines (If they exist) and there can be no significant legal action pending against them.
What Mr. Macy told you by itself is true, but he forgot to mention that all of this does not apply to you in any way, shape or form. I guess that was just another honest oversight on his part.
Are reverse splits good or bad?.
Whether a reverse split (Consolidation) is good or bad is totally dependant on the motivation of the company for doing it.
If a company has achieved sustained profitability then the market knows they no longer need to raise funds by share issuance so it is viewed purely as house cleaning and is treated favourably.
If a company is not profitable then the market knows that it is conceding that profitability is not in the near future (Capitulating) so they need to get the share count down to raise operating funds by offering more shares to the market. If the company's share price is below 5 cents then the need is compounded due to the minimum price for a share issuance being set at 5 cents unless you apply and receive some form of distress exemption. The market never treats this favourably because it is now clear to them that the company is not executing on it's promise to become profitable as they previously stated, and that the shareholders are about to get diluted down once again
....and that a honest, accurate and simplified explanation of this whole thing.