Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Ted Warren's Investolator -- Ignore unavailable to you. Want to Upgrade?

To: Pacscrumhalf who wrote (1399)	10/28/2023 1:36:17 PM
From: WEagle	Respond to of 1795

One more thing. Your profit or loss will be computed by multiplying your cost per share by 6 when comparing to the new value of your stock's price, but to be completely accurate, you will need to include an adjustment for the money that was paid to you for the odd share for which you did not receive a new share after the split. WEagle

To: Pacscrumhalf who wrote (1399)	10/28/2023 1:42:28 PM
From: WEagle	Respond to of 1795

Sorry Pac, I messed up. I wrote a lengthy message explaining the handling of the reverse split but did no clit the Post Public button. Now I've lost what I wrote which should have been there before what you are now seeing a my "One more thing" message. I don't have time to re-compose the message now. I am about to go to a meeting as soon as I post my weekly report on my portfolio which I already have composed in a MS Word file. I'll try to write my message again later, maybe tonight. WEagle

To: Pacscrumhalf who wrote (1399)	10/29/2023 3:41:25 PM
From: WEagle	Read Replies (1) \| Respond to of 1795

Hi Pac, Here is what I had written about how to handle the reverse split. Hopefully I'll get this posted this time and not have to type it again. I tailor this specifically to the FTK reverse split of 1 for 6. At the actual time when the reverse split occurs/occurred the company gives you one new share for every six shares that you own, but the new shares are worth 6 times what the share price was for each old share. If there are any odd shares that cannot be traded then the general practice is the company will pay for those share at the price that the old share were trading before the split or a price near that that the company specifies in the terms of the split (and should be approximately the same price at which the shares had been trading). For example, if you owned 7 shares of FTK then you would receive 1 share of the new FTK stock and be paid for the 1 odd share at the price/value of an old share before the reverse split. This all means that at the moment of the split, you have not gained or lost any value. When it comes to charts of the stock price versus time, the usual practice of the charting service is to adjust the price of the stock before the split by the the split factor. In the case of FTK, the price in the chart before the split will be 6 times the price it had before the split. The price after the split will be the value of a share of the stock of the newly issued shares. In doing this, the vertical price scale on the chart will be adjusted as well to reflect the historic price range of the old issues of the stock with the above mentioned price adjustment and the price of the new issues for what ever amount of time there is on the chart since the split occurred. This will mean the the chart will look the same up to the split as it had looked before the split. There will not be a sudden jump in the daily price or price bars (or weekly, monthly, or whatever your unit is) as had appeared in the charts of the stock before the point in time when the split occurred. As I pointed out in the follow-up posting that I did post when I thought I had already posted this information, you will have fewer shares at a higher price plus some extra money in your account for any odd share that were not exchanged. I don't know what your tax laws are so I am not sure how you have to handle this in tax reporting. I hope this is of help. WEagle