In theory, stock splits and reverse splits should have no effect, but in practice stock splits are 
and reverse-splits are 
There are a lot of studyies trying to figure out why this is the case (e.g. imperfect markets, increased liquidity, signal that management is positive, etc.)
Cheaper to buy small number than big number!
Maybe it manages rich people’s personal assistants. That would actually make some sense, at first I thought it was a middle ground for people not rich enough to afford personal assistants.
One thing to add - you may just get cash instead of the partial shares. Sometimes with a stock split the company only gives full shares and then the cash value of any partial shares. I’ve had this happen at least once for me.
edit: I was bored and semi-interested so looked, you will receive cash:
https://www.sec.gov/Archives/edgar/data/1411579/000110465923007550/tm232700-1_pre14a.htm
“No fractional shares of Common Stock will be issued as a result of the Reverse Stock Split. Stockholders of record who would otherwise be entitled to receive a fractional share will receive a cash payment in lieu thereof.”
I suppose a reverse split could be a sign of distress here, ie AMC knows it might otherwise become a penny stock soon, which would make it subject to delisting from the NYSE. But I doubt this would explain the price drop, because everyone outside of the reddit cult already knew the company was in trouble for bigger reasons. A reverse split doesn’t tell us anything that 14 straight losing quarters didn’t already. Their bizarre investment in a failing gold mining company wasn’t a great sign either (and they’re currently losing money on that investment). AMC wouldn’t even exist today if not for being continually bailed out by redditors willing to buy newly issued shares at any price.
I think this is only a statement about stockholders of record, not for people who hold their shares through brokers. So if Schwab has 10 individual investors all of whom own 2 shares of stock, those 20 total shares would be reverse split into 2 shares. I believe it’s up to the broker whether they want to allocate fractional shares to the individual investor or just pay them the cash equivalent.
Also, reverse splits can be a fun way to force out minority shareholders you don’t like: A owns 60 shares of the company’s 100 shares, B owns the remaining 40. Reverse split the stock 1-for-50 and boom A is the only remaining shareholder. (NOT LEGAL ADVICE)
Charles Schwab CEO with the “i’m buying the stock” scam - that’s why he gets the big bucks.
Let he who is without sin, motherfucker.
First the bank failed because it was too woke, had minorities on it, and now how about the bank failed because of work from home
https://twitter.com/davidmwessel/status/1636327520227164160?t=Ix04jQ6PtffS9JOYVx-eVQ&s=19
Out of sight, out of mind
https://mobile.twitter.com/IChotiner/status/1636367642876612611
I’m with Frank. Chotiner is way over his skis.
this is fine
Fucking gross
