2013年11月14日星期四

Why would a company reverse split and immediately re-split their stock?

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  • making money on the stock market
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I bought 15 shares of stock in a company, and it was doing well. I bought it for $25 a share and over time it went up to about $40 a share. Then they announced they were doing a 25:1 reverse split, immediately followed by a 1:25 split. Essentially it netted out to the same so I wondered why do this at all? Sadly, since I had less than 25 shares, they forced me to sell my stock. After the announcement, the stock dropped to $20 a share and I lost money on the deal, so I am disappointed. I was hoping to hold it for a long time and outlast the drop.


Why would a company do a reverse split immediately followed by a split?
  • Additional Details
  • So why would they want to get rid of people holding fewer than 25 shares, and why would that make it drop?

  • Why would a company reverse split and immediately re-split their stock?

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