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Comment by jsnell

If anything, I'm more confused after that. You're comparing the case of a $20 share price without a reverse split to the same share price with the split. That's absurd, since changing the number of shares changes the price (market cap = number of shares * price of a share -- and the market cap is to a first approximation fixed).

The proper comparison would be a share price of 20 -> 60 with the reverse split, or a share price of 2.5 -> 7.5 without. And with those numbers you'll see that the split had no effect at all.

Maybe there's a scenario in which a reverse split screws up the employees. But I don't think it's the one you're describing.

parent jsnell 11 years ago

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