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Microcap & Penny Stocks : IECS- NASDAQ $0.50 stock won prestigious OIL and Gas...
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To: JOHN SAMSEL who wrote (468)5/10/1998 10:52:00 AM
From: Ahda  Read Replies (1) of 747
 
A company when looking for financing can do a reverse split to increase value of shares and use said to assist in equity funding.
A company can also not have enough shares so the purpose of a reverse split is if they have 50,000 shares authorized and they have 40,000 trading. They can do a reverse and then issue more shares as they are set up for 50,000.
Hope i didn't confuse anyone.
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