Reverse Stock Split "LUNC 1/1000"

We propose reverse stock split with lunc to 1/1000.
6.5T >>>>> 6.5B
How about this?

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They won’t listen, they’d rather burn breadcrumbs everyday and chant “$1 possible”

I take my experience in stock market trading to help give an example of why this at best does nothing, at worst can be negative.

Theoretically it sounds like a great idea, but in reality it does not get you more value at all.

Publicly traded companies have a few options for reducing number of outstanding shares.

  1. Share buyback programs
  2. Revrse split.

Majority of companies (that are healthy) do option number one as it returns value to the shareholders by reducing the number of shares at no cost and ads value to them

The companies that are unhealthy or maybe more desperate will do option 2. Maybe the share price has fallen below the standards of the exchange they are trading on. So they reverse split in order to inflate the cost of the individul share. While that does work, it adds zero value to the holders of stock, as the market cap is the same, but the number of shares are equally reduced accross the board, so everyone’s total value remains unchanged.

Say 1000 tokens are worth 0.0001 each =$0.10
If you reverse split 1000 to 1, now you will have 1 Token worth $0.10.

Companies that reverse split usually drop after a reverse split for various reasons meaning the shares become worth even less.

Here is an article that helps.

Reverse Stock Split Definition.