Day 881: 5 Minute Freewrite: Thursday - Prompt: split

For @mariannewest in #Freewriters

A reverse split is a process by which shares of corporate stock are effectively merged to form a smaller number of proportionally more valuable shares. Like if you have 1000 shares that cost $10 reverse split will make you have 100 shares at $100 dollars.

I understand that the big boys do reverse split so they can drive prices even lower to purchase a large amount of them at a lower price, but at the same time make it look like they cost a lot so that inexperienced players would be scared to buy them.

A forward split is when it's the other way around. Let's say big boys know that shares almost at their peak. What can they do to make little suckers to invest? To make them look like they cost ten times less.

That's how the little guy usually thinks. These shares cost $70 O'boy that's way too expensive and what if they will go down? I'd rather buy those at $7 Once enough suckers do this the big boys do a reverse split and drive the price even more down. Minnows get scared and sell below cost while the big boys profit. )))