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How does the reverse stock split affect options, it would make each share more valuable wouldnt it?
by unlikelymordant 5y ago
How does the reverse stock split affect options, it would make each share more valuable wouldnt it?
- toyg 5y agoIt typically means the stock is tanking. If you know your $10 stock is going down, it looks better to merge it back into $1000 stock; this way, when it tanks, instead of $0.50 shares you get $50 shares - which look more presentable to new investors. Very roughly speaking, Split -> Stock is so good the company wants to cash in; Buyback -> Stock is still good enough that the company wants it back; Reverse Split -> Stock is tanking and company doesn't want to scare people.