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I've heard of other schemes, like a forced 10,000:1 reverse-split, with shareholders having fewer shares being paid out in cash. Then the company IPOs with a mu
by avidiax 4y ago
I've heard of other schemes, like a forced 10,000:1 reverse-split, with shareholders having fewer shares being paid out in cash. Then the company IPOs with a much higher value, but only the shareholders with 10,000+ shares get a piece.
My impression is that if rank and file employees profit off an IPO or aquisition, it means someone dropped the ball on pushing them out. Until it becomes impossible to recruit, these shenanigans will continue.
- cyanydeez 4y agoIt's more that private corporations aren't required disclosure of their articles of incorporation and aren't required to operate in good faith. Basically means scams are protected via government obfuscation.
- pinewurst 4y agoUsually the big reverse split is coupled with the issuance of new post-split shares to the insiders. I’ve heard this referred to as a “wash out”.