Well, the market is closed.
There is a section in the Rules (the bold part of Rule 3) that deals with stocks that get delisted, or moved off the exchanges we allow for this game.
In a stock split X for Y or X:Y, the first part X is what you get, and the second part "for Y" is what you (or your broker (or their clearing firm) holding your shares, put up to get X.
Just as a 2 for 1 split results in you having 2 shares "for" 1 share, a 1 for 5 reverse split or a 1:5 reverse split results in you having 1 (new share) "for" 5 old shares.
Often companies plan a reverse split or get authorization from their shareholders for a range of reverse split ratios, and if the stock rises above $1.00, to no longer threaten their listing, they cancel the reverse split. I think this is what happened with SIRI, which was below 10 cents (I bought it in Game 9 for .1049). That stock with no reverse split is now 1.31.
My point: you could be jumping the gun if you count your dead chickens before they don't hatch.
When a reverse split happens, the symbol changes for 20 trading days, and players should inform Elroy of the two symbol changes, first with the D as the 5th letter (or whatever the change is), and on the 21st day, that it has gone back to the regular symbol. Elroy picks up prices from a database. It's fairly automatic. We've had many reverse splits over these games.
So I don't think you're kidding.
If a stock has a 1:5 reverse split, and you report it to Elroy, he will divide the shares by 5, multiply your purchase price by 5, and update the symbol; and the price update will pick up the correct price, and there won't be a 400% increase (from .40 to 2.00) because the shares you hold will be effectively adjusted by dividing by 5.
The same way ADP or your broker's back office does it.
Splits work the same here as they do with a broker, if you report it to Elroy. Any other player can report a split or reverse split that was not noticed when it happened.
Most situations that are likely to come up, probably have come up already in 13+ rounds. |
