Shares splits and reverse splits
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Shares splits and reverse splits
Share prices used to move in the range of 10 to 100. Once above 100, the shares would split 1 to 2 and the price will be reduced by 50%. When under 10, a reverse split took place, the number of shares was reduced by 50% and their value doubled.
This was done to prevent share prices from going into the tens of thousands while other shares would cost fraction of cents.
We currently see that many corporations have very large numbers of shares and transactions now involve billions of shares.
We will now split shares when the value reaches 120 and reverse split when the value goes under 20. Several more changes will follow and the numbers of shares will decline while their values will increase.
Share splits and reverse splits have no influence on the market value of corporations nor do they have any influence on the profit or loss of corporations.
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