Wrong. If you had 100,000 shares before the split they were worth about $6,000 (200,000 X 0.06). After the split you have 2,000 shares and they are worth about $6,400 (2,000 X $3.21). I'm ignoring round off errors of fractions of a cent. The reason they did the reverse split was to continue trading on NASDAQ. Stocks that sell for less than about $1 are delisted.
Looks to me like the market capitalization wasn't updated for the reverse split yet. No biggie.
Hello,
NEWL did a 1-for-50 reverse split. When it closed last night, market capitalization was 9 million or so, the price per share when it closed was 0.06 or so. I'm a bit confused about the the reverse split work. According to the info I was able to find online is that if you own 100,000 shares, after the 1-for-50 reverse split, you own 2000 shares. If the shares were bought at $1, now each of 2000 shares is worth $50. If I'm wrong, please clarify the reverse split for me?
What is confusing me is NEWL pre-market price was $3.21 and the market capitalization was 445.89M. Could it get that high from 9M to 445.89M before the market start? Or the 100,000 shares an investor owns remain 100,000 shares and don't get reduce to 2000 shares after the reverse split?
I would greatly appreciate you clarification
