If stocks in certificate miss a positive split, are stocks in cert protected against a reverse split as well?

Question

If I have 10,000. shares of a stock and I elect to have 5000 in certificate and the stock splits 4 to 1, only the 5000 shares in the market are effected. Does that work the same during a reverse split? Will the 5000 in certificate be actually 5000?

Answer 1

What do you mean by "in the market"? Do you mean "deposited with a broker"?

If you have 5000 shares in certificate and then there is a 4-1 split then you have 20000 shares in certificate and the company's transfer agent or registrar should have mailed you certificates for 15000 shares.

If they are held by a broker the math is the same, but the broker will get the shares and put them in the account.

During a 1-4 reverse split 5000 old shares become 1250 new shares. If you don't send in your certificates, you're still only entitled to sell 1250 new shares and the company will convert your old shares when you sell them and issue 1250 new shares to the buyer, who will be entitled to 3750 more new shares if you contracted to sell him 5000..