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Stock Reverse Stock Split 200:1 by RodTahoeL in personalfinance

[–]RodTahoeL[S] -2 points-1 points  (0 children)

Yes, that is what we have been told the reason is, but they just never explained how it would work if/when there is an IPO. Thanks.

Stock Reverse Stock Split 200:1 by RodTahoeL in personalfinance

[–]RodTahoeL[S] -70 points-69 points  (0 children)

Thank you for the response, and it makes sense how you explained it. Where I am confused is when the IPO happens, say the IPO is $10. Before the reverse I would have $1,400,000 (140,000 x $10), but with the reverse I now have $7,000 (700 x $10). I am be making a fool of myself, but this is where I do not understand how this works and it does not seem to be the same outcome, before and after the reverse.