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To: gtoland who wrote (327)7/23/1998 12:58:00 AM
From: Jon Tara  Read Replies (1) | Respond to of 680
 
Gtoland, most stocks fall significantly after a reverse-split.

So, let's say a stock is 0.05, and does a 10-1 reverse-split. Now it should trade at .50. You haven't gained anything, of course, because you now only have 1/10 the shares that you had.

Unfortunately, at this point, the stock is likely to fall, to .45, .40, .30... More often than not, they fall back all the way to the original price, at which point the company may reverse-split it again.

Ad-infinitum.