Go Back   Business and Finance Forum > Business and Finance Forum > Investing
Register FAQ Members List Calendar Search Today's Posts Mark Forums Read

Reply
 
LinkBack Thread Tools Display Modes
  #1 (permalink)  
Old 11-15-2009, 12:25 PM
Member
 
Join Date: Aug 2009
Posts: 33
Default What is a REVERSE STOCK SPLIT?

So I know AIG has filed for a reverse stock split(RSS) and is like $35/share, but what if it goes up to $1000/share? do you get that much money in profit or does the RSS screw you over and divide your profit by 1/20..? :*(
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #2 (permalink)  
Old 11-15-2009, 12:26 PM
Junior Member
 
Join Date: Nov 2009
Posts: 4
Default

On a stock exchange, a reverse stock split or reverse split is the opposite of a stock split, i.e. a stock merge - a reduction in the number of shares and an accompanying increase in the share price.The ratio is also reversed: 1-for-2, 1-for-3 and so on.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #3 (permalink)  
Old 11-15-2009, 12:27 PM
Junior Member
 
Join Date: Sep 2009
Posts: 6
Default

i think its where you get so flexible that you can suck your own penis but backwards i heard it costs a lot of money to do
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #4 (permalink)  
Old 11-15-2009, 12:29 PM
Junior Member
 
Join Date: Nov 2009
Posts: 1
Default

On a stock exchange, a reverse stock split or reverse split is the opposite of a stock split, i.e. a stock merge - a reduction in the number of shares and an accompanying increase in the share price.[1] The ratio is also reversed: 1-for-2, 1-for-3 and so on.

There is a stigma attached to doing this so it is not initiated without very good reason. Many institutional investors and mutual funds, for example, have rules against purchasing a stock whose price is below some minimum, perhaps $5. An extreme case would be when a share price has dropped so low that it is in danger of being delisted from its stock exchange.

It is also possible that a reverse stock split could be used as a tactic to reduce the number of shareholders. In a hypothetical 1-for-100 reverse split any investor holding less than 100 shares would simply receive a cash payment and no shares of stock. If the resulting number of shareholders has then dropped below some threshold, it may be placed into a different regulatory category; such as an S corporation which is required by law to have fewer than 100 shareholders.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #5 (permalink)  
Old 11-15-2009, 12:30 PM
Junior Member
 
Join Date: Nov 2009
Posts: 1
Default

hhmmm, maybe the ads
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Reply


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


All times are GMT. The time now is 10:38 AM.


Powered by vBulletin® Version 3.6.8
Copyright ©2000 - 2010, Jelsoft Enterprises Ltd.

Web Hosting by Chime Host