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YRCW changed overnight to YRCWD. So price has changed from $.25 a share to $6.25 a share.
Will this cost reflect in your brokerage account? Or is this temporary? I heard that the stock symbol will convert back to YRCW at the end of the month.
Exchanges have requirements for stocks to stay above a certain price for period of time,otherwise they face a "de-listing",and will go on the "pink sheets",on which trading is very light.A reverse split is never a good sign for a company.It will not affect you tax wise as your will just own less stock at a higher price.
YRCW changed overnight to YRCWD. So price has changed from $.25 a share to $6.25 a share.
Will this cost reflect in your brokerage account? Or is this temporary? I heard that the stock symbol will convert back to YRCW at the end of the month.
What does a reverse stock split do?
Usually it Does You In ....
Normally it means Get off at the next EXIT !! and don't look back.....
In my experience the new higher stock price falls just like it did when it was lower priced. I'm no expert on this but I think as someone else touched on once they get delisted bigger funds and things wont buy them, even sometimes just if they are under say $4 or so. Anyhow, they do the reverse split to bring the stock price up so they dont get delisted and so institutional investors will buy it.
Generally the price continues to fall after the reverse split. I would say if you can get out breaking even do it. I recently had a stock do a reverse split. It started to fall and I kind of jumped the gun and sold for a small loss. The stock has continued to fall and I would of lost more had I held however I jumped the gun b/c it did have a few bounces and I could have got out without taking a loss if I had waited a week.
YRCW changed overnight to YRCWD. So price has changed from $.25 a share to $6.25 a share.
Will this cost reflect in your brokerage account? Or is this temporary? I heard that the stock symbol will convert back to YRCW at the end of the month.
What does a reverse stock split do?
one advantage is it increases the liquidity.
Also alot of money managers and institutions can not buy stocks under $5. Some are forced to buy stocks once they reach $5.00
Reverse splits aren't always reversals of fortune - CNET News
"Since it's done for purely cosmetic reasons and doesn't change a company's finances, the market knows it and the company gets penalized. Most companies end up seeing their stock prices continue to slide," said Pamela Peterson, a finance professor at Florida State University and co-author of a 1992 research report, "A further understanding of stock distribution: The case of reverse stock splits."
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