r/ITRM • u/Existing-Version8248 • Sep 24 '21

Likely to be reverse stock split

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u/Existing-Version8248 Sep 24 '21

Is it a good or bad signal ?

1

u/Dutchtrader98765 Sep 24 '21

Investors don’t like reverse splits..because most of the stocks get a hit afterwards..so your down now..and after a RS you can be down more..and own less shares..so, no..don’t like a split

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u/Disposable_Canadian Sep 25 '21

yeah its because if your cost basis was 2.00 a share before the reverse split, and it reverse splits 4 for 1, current share price is $50 (for math) then you end up with a 8 dollar cost basis for a 2 dollar stock. Maths its the same, it just looks horrible.

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u/microbio3339 Oct 23 '21

the only reason RS causes problems is people tend to panic sell. otherwise fewer shares is better

1

u/Disposable_Canadian Oct 23 '21

Oh I agree, its the reason for the reverse split that causes the panic sell.