Timeline for Can companies use reverse stock splits to liquidate my shares at unfavourable prices?
Current License: CC BY-SA 4.0
9 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Sep 1, 2020 at 15:26 | comment | added | Harper - Reinstate Monica | @TannerSwett Not a quote, an example. | |
| Sep 1, 2020 at 11:53 | comment | added | Sophie Swett | Where is the quote in this answer (the paragraph about Oceanic Air Lines) taken from? | |
| Jul 24, 2020 at 6:40 | comment | added | toolforger | Buying 300 shares would be what you want to do, but you need cash to execute that. Sure, you could buy these stocks via debt, but then the amount of cash at risk from misjudging the company's health increases and may put you in bankruptcy. I.e. buying the missing 300 shares, while prudent, might not be possible or desirable. | |
| Jul 15, 2020 at 17:16 | comment | added | Mark | Rescoping stock value may be one reason to do this, but shaking off small customers isn't necessarily not a reason to do it. See the link in mhoran's answer for things not quoted: "...completed a 1-for-30,000 reverse split of its common stock followed by a 30,000-for-1 forward split..." and "...will be eligible to delist and deregister because it has fewer than 300 record holders following the reverse stock split." | |
| Jul 14, 2020 at 22:35 | comment | added | jpaugh | "As long as you do it quickly, its value isn’t likely to change a whole lot." While I accept this as true on the face of it, as a rule of thumb, I am suspicous of any strategy which relies on others not employing it. :-) | |
| Jul 14, 2020 at 3:26 | comment | added | vasin1987 | In my country, yes. Usually notice will be put out 14 days in advance. Shareholder meeting is required. | |
| Jul 14, 2020 at 0:26 | comment | added | curiousdannii | Do notices like these always have to be put out in advance so that stockholders have enough time to buy as many shares as they need to survive the reverse split? | |
| Jul 13, 2020 at 22:46 | comment | added | Steve Jessop | Given the numbers in the example, I don't think the stock exchange really will require a $500/share valuation (higher than AAPL, lower than GOOG). It looks like something more strategic, to get rid of small investors. And, for numbers other than the ones in the example it'd be harder to see why the reverse split is a serious problem for the questioner! For example, if they were going for $11 then the questioner would be forced to sell $9 of shares (or subscribe an extra $2). | |
| Jul 13, 2020 at 17:18 | history | answered | Harper - Reinstate Monica | CC BY-SA 4.0 |