Stock Market Training: What is a Reverse Split?
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- Опубліковано 6 чер 2024
- Stock Market Training: What is a Reverse Split?
If the stock you are investing in or trading is facing a reverse split, what does that mean? What happens to the shares you own? That's what I discuss.
Straight to the point ! Thank you so much man. Very helpfull and as always.
You're welcome.
Thanks for the video. I was thinking a RS would be something like this, and after hearing you explain it, I was right, but with much more clarity from you. Appreciate it.
Thanks for watching
Thanks for the lesson bro. I got too happy when XGTI did a reverse split today and almost crap my pants thinking I was profitting.
Yeah, it happens to many, so no worries lol
J
So there is no profit just the shares change price and stay the same value?
Same here 😖 so sad
I learned of reverse split with Aurora Cannabis. Won't soon forget it. The logic I understood but thanks for the summary at the end of the video confirming that they are generally not a good sign
Never fun to go through one.
Even though after this video I wanna cry! Thanks for this easy explanation 👍🏽
Thanks for watching (and sorry for your situation)
I gave a like the moment i heard the first sentence. That’s exactly why i’m here lol
cheers
I gave a like as soon as I read your comment.
Yes. He is spot on 😅
Absolutely perfect,answered my question completely. Couldn't ask for a better explanation :>)
Glad it could help!
This made a lot of sense! Thank you. I like trading without emotion ~
Glad it was helpful!
Very timely message Clay. Thank you.
+dragland7268 You're welcome
Thank you, i was freaking out, i am in a stock that just had a reverse split before close.
Ouch.
@@claytrader stock aln 2,000 shares at 0.1470. They reported a name change and reverse split. I bought in before the split announcement. I will be getting out as soon as i can and staying away from this stock. Thank you for the reply and info video.
Chalk it up as a learning experience.
I am A new Trader I have been watching videos for about 3 and I understand the way you explain it better than the other guys
Thanks for the feedback. Glad they could help!
Thanks Clay, Im diving into the world of stocks, and I value these types of videos. New Subscriber alert !
Welcome to the channel Mark!
I thought I made a fortune today from my USO shares, i was going crazy asking what happened to my shares. thanks for this video, thought me a bunch.
Bummer!
Thanks for the info, I’m new to stocks, but question I also have USO and they did a reverse split , I bought 13 shares for October 13th $9 call does my money have a chance to recover or is it lost? It’s been at 1 cent for weeks
Thanks Clay, I have a Penny Stock that went from 12,500 Shares down to 12 Shares, after Splitting Twice, Guess I'll just hold on to it. Thanks for the explanation.
Ouch... hopefully a learnable experience for you.
Don’t invest in penny stock made to take your money
Thank you for explaining this to me! I prefer the way that you broke it down rather than a chart. Kudos
Glad it was helpful!
I was looking at a stock and researching before purchase and saw they were doing 6-1 reverse split in a weeks time. I had no idea what it was so hopped on YT. I watched 3 other videos before yours and this video was far superior and explained it so much better. Thanks Clay 😊
Glad I could help!
Hi Clay, your 101 videos are really insightful, thank you!
My question is this: Why would a company do a reverse split? How do they benefit from having less shares? Why is this an indication that the company isn't doing so well?
HIgher share prices make life easier, more on that here claytrader.com/videos/how-a-company-benefits-from-the-stock-market/
I'll check it out now. Thanks again!
You're welcome.
Thanks Clay. What are your thoughts with whats going on now with the ACB stock with their May 11 reverse split?
if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) which you can find here claytrader.com/team/
You are a very knowledgeable individual when it comes to the market.
I try
Thank you. I have CTRM and I went from 166 to 16 reverse split . A 1 of 10 split amount. That took place on May 28 this year. You explain was easy to understand. Thank you.
Glad it could help!
thanks man! just experienced a reverse on ACB.
Liam Ovadiah lol! Me too! I didn’t know wtf just happened. My 50 shares turned into 4😫
same here!!! i thought i made 10K!
but its not i guess.. am i righht?
Frank LaMar Jr Fr bro I had like 11 and now I don’t got nothing😂
ACB brought me here !
Literally the same reason I'm here..had 200 now 17
The intro was super accurate
Good
Superrrr accurate
Thank you for explaining that! Awesome video!!
You're welcome. Glad it could help.
Thank you clay for explaining that. It happened to me twice with two separate penny stocks and every time I lost shares and they increase the value of the shares that was left however not long after that happened they diluted the market again with massive amounts of shares and the value of the stock Drop Like a Rock and you're stuck. Needless to say I've learned a hard lesson
Thanks for sharing your experience. You are not alone in this. A hard lesson to learn, but glad to hear you have learned it.
So typically, would you wanna hold onto it throughout the reverse split? I'm in on VYNE and they're about to reverse split.
Just trying to do some research and see where vyne will go from here. Hm
That depends on your research and strategy/goals.
What happend with your vyne shares and what did you do?
Im also interested in the outcome
Office Depot brought me here...
Ouch....
Did you Get in Before the Reverse Split or After the Reverse Split
Your videos are truly the best .
Thanks for the kind words.
thank you! ORC is just going to pass through one! 5:1 just as your example!
Thank you so much for the teaching! appreciate!
And thank you for watching!
What if you have 23 shares? WhTs going to happen to the 3 remaining shares?
They'll be reduced to partials
Sometimes no fractional shares, they're reduced to nearest whole in my share case. So just lost in space never to be found
ACB brought me here 🌿☘🍀🌲🍃
bummer!
@@claytrader the bummer is I just started on Robinhood trading and ACB was my first investment 🙃 I guess its part of experience on learning. Thanks for the video explaining it.
@@Deep4kinThoughts cheers, all you can do is learn from it
Thankyou. You explained this very simply so it’s understandable 😁
Thanks for watching!
I can be a teacher now . I got everything what I needed. You are great!
Nice!
6:59 *I was going to say that*
Good thing I said it for ya then ;-)
Where my UGAZ people at
Probably undergoing another reverse split.
lol
Thank you for clearing those COB webs for me, it's funny because that's exactly what happens and the amounts
Glad to help out and clear some cob webs!
Great video. Cleared my confusing. Thanks
Glad it could help.
MoviePass brought me here. 😕
Ouch....
ClayTrader I know right?
I had purchased 100 shares of HMNY @ $.83 per share. They did a 1: 250 reverse stock split. I now have one share and it’s worthless. in doing that process, where did the money actually go?
Into the company's pocket.
Yea me too.i think they are going to have another one soon
Same thing with RNVA!
DRYS lolololol
The KING of reverse splits!!!!
Good Video. Went thru 5 videos and I only understood yours. You made it simple and clear. Thanks. Moviepass stock lol doing a reverse split tomorow.
Yeah, HMNY is now crushing many after the reverse split.
Very useful! Ended up here to find out what ENT is doing! Cheers!
Cheers
Great video!! Thanks for making it make sense.
Glad it was helpful!
Great video very helpful, keep up the work. Thanks
Thanks for the feedback.
Awesome Video. Thanks Clay!
Thanks for watching
Great video! Thank you for the explanation
Thanks for watching!
Very neat and nice explanation! Thanks
You're welcome.
Thank you this was VERY helpful. thanks again
You're welcome.
Great info. I just had one my investment do a split reversal and it threw me off. I think I’m going to trade first thing this morning and move my money.
Glad it could help
came from UCO... Thanks for the explanation
Thanks for watching.
There was this biotech stock that halted today, so I was like "what is up with this stock to where it has gone from 11 bucks a share to over 30 a share in a couple minutes?" so I looked up the stock, found their website, and the website had a Reverse Split announcement in it, so I found this video, and heard your explanation, and even though I traded in it, your video explanation caused me to trade the stock based on the info in this video, and not by "wow, this stock looks like it just might go to who knows how far up"...so thanks so much for making this video...here, let me find that ticker, because I don't remember it...HSDT ...it's Helius Medical Technologies...thanks Clay, and hope you and yours are doing well!
Glad it could help!
Great Job Clay and thanks you !
Cheers!
Nice video. I'm a low level employee of a major company; they may have to consider a reverse stock split. I didn't know what that was. I was just curious; thanks for helping me understand the basics.
You're welcome.
Great video thank you for helping me better understand what an R/S is. I'm a little worried now however because I just got in on RNVA and they're voting on potentially doing in RS this week they are currently at .023 a share. I got in at .01138 a share.
Welcome to the world of penny stocks. I'm guessing everyone is proclaiming how "positive" a R/S will be. It's NOT.
Great video. I just had CEI do a Reverse-Split at 25-1 and I’m new to all of this so I was searching for answers after seeing my shares drop dramatically. Thanks for the info.
You're welcome. Glad it could help.
It's happening again
So if we want 2 help the company we should buy money stocks then
Good stuff man well explained
Thank you.
Thank you so much for explaining this because of I was so mad when my share number is go down I said I it's not my real share number where is the rest of my share, but I feel good now thanks again.
Glad I could help
@ClayTrader great video, very to the point. Super weird times right now, oil and gas obviously all low. Any thoughts on US Oil company for instance doing a reverse split recently? Thanks!
Not good
Best explanation ever! Do companies have to wait a certain amount of time before they do another reverse split?
Thanks. No, they can fire at will, although doing so would totally kill people's faith in their stock.
Im new to investing but have been invested in SLBG for 1 year or so now. They changed to CNXA and then had a reverse split 10-1. My market value has decreased so much and I have no idea where it went?
This video was great because I understand better what a reverse split is but am not sure why my market value has changed so much.
Is this due to its poor performance or am I missing something here?
At the end of the day, I'm invested in this company because I believe in it and would like to learn more about investing.
I would very much value a reply from you!
Most times, "poor performance" is the reason.
Great job bro !
Thanks!
i subscribed with eleven accounts for your awesome trading lessons
Glad you're enjoying!
Well explained indeed!!!
Good!
The best video!!! Thank you 🙏🏽 Muahhh
You're so welcome!
Hi Clay, thanks a lot for this informative video. So, once a company announces a stock split it would be normal to see a drop in the price as investors may panic, causing a spike in number of bears; correct?
Yes, exactly
NAS.OL brought me here as well. Perfectly explained, thank you! Are reverse splits more occurring these days since covid? BTW I still believing in this stock, Scandinavia will recover quickly after covid so I'm no going to sell at this moment.
I think they're pretty normal.
thank you clay. nicely explained. very helpful.
You're welcome. Glad it could help.
Great video, thank you
You're welcome.
Thanks Bro, Great Video!
You're welcome. Glad you enjoyed.
HMNY just did one. I freaked out. I watched this video. I'm okay now but still at a loss. Thanks man.
Glad it could help.
Thank you for explaining!
You're welcome.
And you were right...this morning $SQQQ just had a reverse split... i panicked because i sold it yesterday for $10 and this morning it was $40...thanks for explaining it!
haha... yup....you didn't miss out on anything.
Thank you for this. So will this affect buyers if one was to sell them after the reverse split?
It affects everyone.
Quite detailed and explained well.
Thanks!
Hey. Great vid man. I got that I think. However I met this term now while a I am starting to learb about shorting and i get the rough meaning (it is just opposite to classic "long" way) So is a reverse split very bad for a short position?
Thank you.
No. It's neutral because everything changes in proportion.
This was good! Thank you!
Cheers!
Terrific Video - nice job
Thank you.
Thank you this really helped.
You're welcome, thanks for watching!
@@claytrader I had just invested in Inpx Had 500 shares now only 11!!! I am new to investing in stock using Robinhood app......so the other day I Open my app and was like what happen here.
Yup... you're not alone... INPX was a "wake up" call for many in regards to learning about reverse splits
Great video 👍👍👍
I just have Aurora stacks and they are about to do it and I didn’t know what it meant
Thanks for watching!
Your stock values stay the same, however you lose your multiplier(amount of shares) you own. Great video, well explained. If any company I invest in does a reverse split then I will sell up and move on as its a fabricated way to increase the stock price in giving an illusion that a company is bigger or doing better than it actually is. Its a deceptive act as far as I'm concerned.
Thanks for sharing
@@claytrader You're welcome, thanks for doing such a good I formative video and thanks for taking the time out to reply. Much appreciated
@@jamesbrand5293 cheers!
excellent, well explained.
Glad it was helpful!
Thanks awesome video
You're welcome.
Hi Clay, your video has been always helpful. Thank you. I have quick question, who sets that $15.00/share? In other words, what if you own 100 shares @15.00 but during the reverse split you share is up to $20, do you still get evaluated according to $15.00 or $20 as a shareholder Perspective?
This should help claytrader.com/videos/trading-101-what-makes-a-stock-price-change/
Not sure if he answered you from that link he put there. You are making me wonder how the new price is determined. Is it on the day that the reverse split occurs?
Hi Clay, very informative video!
Do you think a company does reverse split it will lead to short squeeze?
Cause that is not a good move and then traders will short the stock and eventually need to buy in order to complete the movement
Nope. Most times it does not.
Thank you! Thank you!!!
You're welcome!
Thanks for making this video
You are welcome. Thanks for watching.
very well explained nice
Cheers
Good one well explain
Thank you 🙂
say you are in the red, is your average stock price ie when you break even also multiplied by (5)?
I'm not sure what you're asking.
Are stock prices typically falling after a reverse split?
Great video Clay. Question: Aurora Cannabis (ACB) TSX: is going to be consolidating their shares 12:1 this may in order to meet & enlist in the NYSE. Considering what you've mentioned, do you consider that a good move? their mission is more exposure to investors in a bigger trading platform. Let me know your thoughts Thanks again!
if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) which you can find here claytrader.com/team/
GREAT VIDEO THANKS!!!
You're welcome!
great video! thanks
You're welcome!
Very informative . Video
Glad it was helpful!
Hey, a question plz.
In case you own a number of shares that isn't divisible by the ratio of the RS, what happens?
(for example the ratio is 3:1 while you own 1/2/4/5/etc. shares)
You'll get "fractions" of shares. So, in theory, you could end up with 1/2 of a share.
Claytrader. Answer this one for us. If we buy 100 shares in johnson&johnson. And the shares went up. Do we get the dividend share automatically or do we have to buy the dividend share separately to receive the dividend gain.?.
No, you still get the dividend no matter what the stock price does.
So this is more for companies that go from big to a penny stock level? What about companies that are started as a penny stock and are in an upward trend? Would they do a reverse split to as they are already in an upward trend? Thanks.
That's the choice of each company and what they think is best for their situation.
I understand a reverse split now, somewhat at least. I really wish I had known before but JNUG just split and I went from 10 shares to 1. Now I know I didn’t lose money in fact I’m still gaining about 50% more then I put in. However I feel like I don’t have any holding in it anymore since I only have 1 share.
Should I sell after a reverse split? Should I risk it and buy more?
Is it possible to sell before a reverse split at the higher price and get that per share before it becomes the price of one?
Apparently they had announced they were doing this but I wasn’t paying attention. I’m not sure where to get information like how to manage stocks in this case.
if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) which you can find here claytrader.com/team/
great video!!
Thanks!
Hi @ClayTrader, nice video. Wondering if you can do a visual video on how Warrants effect a stock?
Good idea. I'll see what I can do.
@@claytrader thanks! Looking forward to it. Just subscribed too. Didn't realize I was still unsubscribed, even though your videos keep showing up.
Cheers
My shares doing a reverse split in about a week, I see this is referred to as stock merger. I just read an article that this was going to be happening soon. So at least they gave a headsup that it was coming, rather than an after hours surprise. The company is PolyMet Mining, NYSE ticker abbreviation PLM. They're priced at .42 cents right currently and have actually been increasing in price from. 22,.28,.31 cents, peaked at a high of .60 cents on one of their runs. But I wanted to ask what you think the purpose of this 10 to 1 stock merger would be? Simply to increase price per share? Perhaps with a higher share price hoping to attract more attention and investment? What else do you think? I dont know if pressure was put on them by NYSE, being that they have been under a dollar for existence. And It isn't due to losses, when actually have been increasing in share price, and forecasted to gain quite bit of value. I bought in at an average of price of .27 cents per share, purchasing around 2,500 shares. This split will take them from over 1 million shares down to roughly 100,000 shares . I invested because they have been granted new rights to a mining project in Northern Minnesota, that the company owns 100% of the rights to. They will be mining copper, nickel, palladium, and other precious metals including gold,silver,platinum,palladium. It is predicted to be largest copper mine in north america when fully operational. They are about 3 years away from pulling metal out of the ground, now doing rehabilitation on old mining infrastructure that will be used again. So I saw this as a long term or hold investment, and got in rather early while stocks still under a dollar per share. Northern Minnesota has the largest deposits of platinum anywhere in the world, and northern MN has been renown for iron ore mining for a century, but the hold up has been environmental concerns because the area is rather uninhabited but dense forest and nature and a very Democrat voting area, so they have blocked a lot of mining proposals in past and even shut down old operations.
Thanks for sharing.
Thank you sir! straight forward video with concise explanations. like 👍 and sub!
Cheers!
So your saying if the company stock does not go up and continues to drop I'm eventually screwed?
Has there been any time where the investor benefited from a reverse split? - Thank you for the video.
I mean there have been a few instances, but the VAST majority of the time, it doesn't work out well.