FCEL stockholder reveals a truthful reason companies do reverse splits

By Free Republic | Created at 2024-09-27 17:50:24 | Updated at 2024-09-30 17:31:22 3 days ago

FCEL stockholder reveals a truthful reason companies do reverse splits
Fast Edgar ^ | 27 September 2024

Posted on 09/27/2024 9:47:56 AM PDT by MeneMeneTekelUpharsin

This stockholder, for the first time I have EVER seen in my life, shows an alledged behind the scenes corruption on the part of directors of a company to do a reverse split of shares to stay financially viable instead of actually cleaning up their act and trying to become profitable. This has probably been the case with many stocks that have gone through reverse splits, but THE CORRUPT MEDIA DOES NOT DO ANY INVESTIGATIVE TRUTH REPORTING ANY MORE!!!

TOPICS: Business/Economy; Crime/Corruption; Miscellaneous; News/Current Events
KEYWORDS: fcel; reverse; reversesplits; split; stockholder; stocks

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Thank you very much and God bless you.

I am absolutely sick of Wall Street folks robbing people. I do not own any FCEL by the way, but have seen this happen with other stocks I have owned. The entire system is totally crooked.

To: MeneMeneTekelUpharsin

I experienced my first reverse split this summer, I’ve been an equity trader for over 30 years and never saw one before.

2 posted on 09/27/2024 9:55:14 AM PDT by CapandBall

To: CapandBall

GE was a big one.

Reverse splits keep firms from being delisted from an exchange or from being boycotted by investment houses who do not invest in stocks below a low level also.

The reverse splits annihilate employees with restricted stock or plans tied to options.

3 posted on 09/27/2024 9:59:42 AM PDT by Mouton (A 150MT hit may not solve our problems now but is a good start. )

To: MeneMeneTekelUpharsin

The exchanges have listing requirements. If the stock trades under $1 for a period of time they will get delisted. So a reverse split can be beneficial to keep your listing. But yes, there are plenty of scams. Some companies won’t make money for a long time - experimental drug companies for example that don’t have a product to sell. But sure there is a superficial aspect to it too. Penny stocks look, well, worthless. So they try to make it look more important.

Some companies issue too many shares and if they aren’t making money they drop a lot in value obviously. A reverse split will reduce the share count making it more scarce.

4 posted on 09/27/2024 10:01:30 AM PDT by monkeyshine (live and let live is dead)

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