GM plans 1-for-100 reverse stock split

[stag15]

LOL!

http://finance.yahoo.com/news/GM-pl...43068.html?sec=topStories&pos=1&asset=&ccode=

That means one share of GM will be $180? Ok, I will definitely start investing. Would this be a good thing to short at $180 per share?

 

[american.swan]

Doesn't that mean if you have 50 shares you now have half a share?

 

[stag15]

Doesn't that mean if you have 50 shares you now have half a share?

I would think your broker would have to sell your shares?

 

[jclay2]

Apparently GM did not like being on the dollar menu.

 

[stag15]

Nevermind, the stock is down 13% AH, now only $160 after the split.

 

[dannno]

Apparently GM did not like being on the dollar menu.

 

[RonPaulCentral]

LOL!

http://finance.yahoo.com/news/GM-pl...43068.html?sec=topStories&pos=1&asset=&ccode=

That means one share of GM will be $180? Ok, I will definitely start investing. Would this be a good thing to short at $180 per share?

You bet it will be.

 

[OptionsTrader]

Will be interesting if it stays in the DJIA or not.

There could be a play here on the /YM or DIA if the reverse split stock goes to zero in a bk.

 

[Knighted]

That means one share of GM will be $180?

Mission: Keep up appearances and keep the good news rolling in.

 

[Zippyjuan]

Dow Jones is usually based on their total capatilization- not the dollar price of their shares but if the share price drops below a certain point (often $1) some brokers stop listing and trading it.

 

[tmosley]

Will be interesting if it stays in the DJIA or not.

There could be a play here on the /YM or DIA if the reverse split stock goes to zero in a bk.

What is the /YM and the DIA?

 

[muh_roads]

The only time I've ever heard of something doing a reverse stock split is if it was a scammy pink sheet stock. They always are never good for the shareholder from what I've witnessed.

 

[stag15]

The stocks usually return to their previous price per share after the split.

 

[Wadesc]

This is bad news for those who are stuck with GM shares atm. Obviously.

 

[Jordan]

Will be interesting if it stays in the DJIA or not.

There could be a play here on the /YM or DIA if the reverse split stock goes to zero in a bk.

I'm just waiting for the day when index funds and ETFs dump their GM from their DIA tracking indices....

Either way, there could be a lot more volatility after the reverse stock split, and very few reverse stock splits have ever ended in higher stock prices.

 

[kc8yds]

you need to re read the story..

they are going to issue more shares that will bring current shares from 1.80 to 0.018
then they are going to turn every 100 into 1 share so that will bring it back to 1.8

in the end your 100 shares @ 1.8 turns to 1 share at 1.8 you lose 99% of your investment