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To: Grabs who wrote (11066)	1/7/1999 11:51:00 AM
From: TraderGreg	Read Replies (1) \| Respond to of 16988

Grabs--The reality of reverse splits is that they are done for the purpose of printing shares...they need the money. When the #shares outstanding is hugging the #authorized, a company has three choices: 1. They borrow money at high rates, assuming they can get the financing. 2. They call a shareholders meeting and request an increase in the authorized. 3. The Board of Directors votes to do a reverse...no other shareholder input needed or asked for. Most BBs do #3. After the reverse, shares cut to 1/5, 1/10, 1/100 whatever. But the authorized shares does not have to change. It's kind of like getting a limit increase in your credit card. The dilution is a natural consequence. TG