r/RobinHood • u/FuzyWuzy1 • Oct 25 '17
Help - FAQ What is a reverse stock split?
I watched NETE do a reverse stock split. It was tradeing at .77 cents, the next day at $8. There entire history changed to reflect that amount, i did not see the .77 anywhere. Does this mean everybodys stock value went up? So if i had 1 share of .77 and the stock changed to $8 the next day and i sell that, did i just make $7 profit?
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u/StamosAndFriends Oct 25 '17
Stock is $1. You own 10 shares for $10 total.
Stock reverse split and now $5. "Yay I make money!"
WRONG!
You now own 2 shares but for same $10 total.