“The Impact Of A Reverse Stock Split”
July 1, 2019
” Summary
Reverse stock splits tend to be blood in the water for traders looking to short a company.
While there are many reasons to conduct a reverse stock split, falling share prices and market price requirements tend to be the main reason.
After a reverse stock split, investors need to be prepared to see the stock continue to fall.
Several upcoming and forecasted reverse stock splits may provide opportunities for investors and traders.”
https://seekingalpha.com/article/3773746-impact-reverse-stock-split
Basically a reverse stock split is if a company feels the stock price is to low they’ll lower the total number of stock at a rate of ratio. Think of it as a pie. Instead of 100 pieces there will be ten pieces. There isn’t less pie just less pieces. So if a person owned 10 pieces of that pie before they would own 1 now. In theory stock owners shouldn’t lose money during reverse stock splits but in reality they (usually) do.