What does it mean when a company says that it's going to reduce the number of authorized shares of common stock in the Company to 750,000,000? I don't know what it began with. But I am wanting to invest in this company, but want to know what this means. Is it a reverse stock split? Is the company doing poorly? I just want to know what it all means.
Thanks!
Beth
2007-09-23 15:09:41 · 6 answers · asked by crazygirl_4now 1 in Business & Finance ➔ Investing
It should be a good thing because, with less shares outstanding, per share earnings should be higher.
2007-09-23 15:15:19 · answer #1 · answered by Phil 3 · 0⤊ 0⤋
Reverse Spits are usually the first sign of a company about to go bust. They're trying to maintain their "listing" on the exchange.
As it goes down further they'll be put on the pink sheets.
It sounds like you're gambling not investing. Newbe's tend to go after Penney Stocks because they think they'll be a quick profit. That's especially true when the stock has gone down.
Just remember a $10 stock that's gone to $4.00 can easily go to $1.00.
BTW: 95% of the answers here have no clue. Don't accept an answer because you want to believe it. Do some independent research. Also I got two quick links for you to look at (see below).
2007-09-23 23:31:37 · answer #2 · answered by Common Sense 7 · 0⤊ 0⤋
Is this Harvard Learning Centers? It sounds very fimiluar!
I read up on this a few days ago, and from what your saying and what I can remeber reading, it's going to be a split, plus a buy back.
If it makes any sence, they are going to buy about 900,000 shares back, and then split, equaling around 750 grand.
I never heard of this, so I think that's how it will work.
2007-09-23 23:10:45 · answer #3 · answered by Anonymous · 0⤊ 0⤋
They aren't issuing stock to the public anymore.
Altough its not a bad thing, its not a good thing either.
This means they had gone as far as they could, so they dont have good investment opportunities, even if they have good earnings.
So, such a company may have plateaued.
2007-09-23 23:21:54 · answer #4 · answered by Carlos G 3 · 0⤊ 0⤋
It can be a reverse split, but it can also be a buy-back of it's own shares to increase investor value.
2007-09-23 22:57:54 · answer #5 · answered by kny390 6 · 0⤊ 0⤋
its time for you to get a watch
2007-09-23 22:16:55 · answer #6 · answered by Jason S 1 · 0⤊ 1⤋