RE:RE:RE:RE:RE:RE:RE:RE:Outlook 2018---Full NASDAQ listing Reverse stock splits
Finally, there's one type of stock split that almost always is bad news for investors. Those are companies that engineer reverse stock splits, by combining existing shares into one new share. For example, a 1-to-10 reverse stock split would trade 40 old shares priced at $2 per share into 4 shares priced at $20.
Often, the reason companies do this is to meet the listing requirements of major stock exchanges like the New York Stock Exchange and Nasdaq, both of which require stocks listed on their respective exchanges to have a minimum value of $1 per share. Generally, the prognoses of companies that undertake reverse splits are poor. A recent study confirms a suspicion that reverse-split stocks will continue to lose value.
–Chris Horymski