3 ms·
The point of the reverse split is to make sure that people with a small position end up with less than one share so they can be forced out. In the best case th
by im3w1l 6y ago
The point of the reverse split is to make sure that people with a small position end up with less than one share so they can be forced out.
In the best case this is a move to reduce administrative expenses relating to stockholders who own an insignificant part of the company.
In the worst case it's a move to steal their shares by forcing them to sell at an unfair price.
- lostmsu 6y agoHow does owning a fractional shares makes forcing out easier for the rest?