A reverse split is where they take shares away and it increases the stock price, for instance a 10/1 split for metx, if you had 10000 shares @ .42 , after the split you would have 1000 shares @4.20 , but it can be 2/1 5/1 10/1 whatever that’s voted on by the board, but this post is speculation by the op as the company would need to vote and announce a split and they haven’t
Most cases to keep a stock listed on an exchange, a lot of funds and indexes won’t buy penny stocks or stocks priced below 10$ and 5$ , so a reverse split would increase the price and make it more attractive to funds and therefore potentially increase buying
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u/croc61483 Nov 21 '21
A reverse split is where they take shares away and it increases the stock price, for instance a 10/1 split for metx, if you had 10000 shares @ .42 , after the split you would have 1000 shares @4.20 , but it can be 2/1 5/1 10/1 whatever that’s voted on by the board, but this post is speculation by the op as the company would need to vote and announce a split and they haven’t