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Microcap & Penny Stocks : Tokyo Joe's Cafe / Anything goes -- Ignore unavailable to you. Want to Upgrade?

To: LouieD who wrote (13773)	5/3/1998 9:08:00 PM
From: LouieD	Respond to of 34592

Newbie stuff....explaination of a reverse split <inside> A reverse split is a fast and easy way for a company to increase it's share value.These are usually very bad for a company.But before we get into that let me explain this split.Say you owned 1,000 shares of stock and the company announced a 10 for 1 reverse split.After the split takes effect you would only have 100 shares.For the most part when you see a stock that just went through a reverse split or just announced one it's usually good to stay clear from that security.Nine times out'a ten the stock plummets after such an announcement.It artificially gives the impression of less shares and a better share price but hides many problems the company might have. again these are just my opinions LouieD