$Faraday Future Intelligent Electric Inc. (FFIE.US)$ First t...
$Faraday Future Intelligent Electric Inc. (FFIE.US)$ First time experience reverse stock split here, what will happen to our current holding stock and the price of our current holding stock? Can someone explain? Thanks
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102979232 : basically your Avg stock price x40. and current Fara stock price x40
小卷卷 : That is, your original stock volume divided by 40. For example, if you originally had 1000, it would be 25. The stock price will also be ×40.
Nix2000 : Get out if you can. RSs are never good. The last time they did, the SP dropped to .035 and it barely survived because of the Reddit army that pumped this shitco. If you decide to hold on, your shares will be divided by 40 and the SP will be multiplied by 40. For example, if you have 40000 shares, you’ll end up with 100 shares, and if the SP is .10 at the closing day before the RS day, it’ll be $4. Since their fundamentals absolutely stinks, it’ll get shorter down plus the dilution that will take place because they’re financially strapped will also drop the SP.
Smallfry82 : we will get shafted like every r/s split
Smallfry82 : if you ever wondered about r/s does for your position check out my positions
102270875 : u will lose massive amount of money as post RS always ends up crashing the stock. A rs of 40 essentially means that there will be plenty of room for shorts to pull the trigger
Ken Griffin Charity : Pretty simple. There is a 1:40 reverse split. This means that for every 40 shares you have, it will be converted to 1 share. The price will also correlate accordingly and multiply by 40. Any uneven amount of shares will be compensated to you in cash.
Note that while a RS doesn’t affect the value on paper, a reverse split is almost always bad news and affects market sentiment negatively since companies do RSs as last ditch efforts to save themselves. This is why the stock is now -15% in pre-market after FFIE made the announcement.