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what does R/S mean?

post #1 of 15
Thread Starter 
if a stock has a 1- 1000 R/S what does that mean? Probably bad? If a stock just changed its name and will have or does have a r/s of 1 - 1000, what does it mean.
post #2 of 15
Investopedia definition:

A reduction in the number of a corporation's shares outstanding that increases the par value of its stock or its earnings per share. The market value of the total number of shares (market capitalization) remains the same.

For example, a 1-for-2 reverse split means you get half as many shares, but at twice the price. It's usually a bad sign if a company is forced to reverse split - firms do it to make their stock look more valuable when, in fact, nothing has changed. A company may also do a reverse split to avoid being delisted.


and some further reading..
http://www.investopedia.com/articles/01/072501.asp
post #3 of 15
Thread Starter 
so if i have 500,000 shares and it does a r/s of 1 - 1000 then i only have 500 shares?
post #4 of 15
Quote:
Originally Posted by hate_zombie
so if i have 500,000 shares and it does a r/s of 1 - 1000 then i only have 500 shares?
Duhhhhh.....yeahhhhhhh!!!!!!
post #5 of 15
Thread Starter 
what do you do if the company changes its name
post #6 of 15
i'd do some more DD and check if this company has been doing R/S and name change habitually...if it does...stay away!
post #7 of 15
So, do the companies that do this ever go back to face value. In other words, if you had 1600 shares and due to a 1/800 split it became 2 shares, if the company ever gets back to 1/1 does your 2 shares become 1600 again? If ever?
post #8 of 15
Quote:
Originally Posted by jlcrutch View Post

So, do the companies that do this ever go back to face value. In other words, if you had 1600 shares and due to a 1/800 split it became 2 shares, if the company ever gets back to 1/1 does your 2 shares become 1600 again? If ever?

its dollar value not share ct that you end up with and need to look at and consider
post #9 of 15
Quote:
Originally Posted by jlcrutch View Post

So, do the companies that do this ever go back to face value. In other words, if you had 1600 shares and due to a 1/800 split it became 2 shares, if the company ever gets back to 1/1 does your 2 shares become 1600 again? If ever?


face value is the value of each share x number of shares...aka market cap ...same value with a diff number of shares
post #10 of 15
Quote:
Originally Posted by jlcrutch View Post

So, do the companies that do this ever go back to face value. In other words, if you had 1600 shares and due to a 1/800 split it became 2 shares, if the company ever gets back to 1/1 does your 2 shares become 1600 again? If ever?


prolly not but only if they forward split it increasing share ct which would decrease the value per share equally...still same dollar value for a stock holder
post #11 of 15
OK, I had 30,000 @ AVG Price $0.004. $12 right. Company did a 1/800 R/S and now account shows I have 37 @ AVG Price $0.32. $11.84 right? But current market value shows $0.04 which with my original 30,000 shares would be $1200. But 37 is basically nothing. I am sorry but I am a beginner placing few trades in spare time from work. If someone could enlighten me I would appreciate the help.
post #12 of 15
Never mind, I got it, I understand now. Appreciate all the help thus far anyway.
post #13 of 15
Quote:
Originally Posted by jlcrutch View Post

Never mind, I got it, I understand now. Appreciate all the help thus far anyway.

ok im glad...you should probably stick around here ...lots to learn and lots of exp here
post #14 of 15

if a company announces an RS that is a red flag, get out those almost never workout

post #15 of 15
and the smaller the company the more of a desperation last survival move it tends to be...it can work now and then for large caps stocks and companies with actual revenue and more importantly profits...but rarely regarded as a positive move or sign
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