REVERSE STOCK SPLIT

[antelopedundee]

An acquaintance owns/owned share in Mullen Automotive MULN which I believe has undergone more than one reverse stock split. What happens to the shares in a person's account if there aren't enough shares to complete a split? Is it cashed out or just lost?

 

[westbranch]

Cashed out, it will be reported as cash in lieu.

 

[antelopedundee]

Cashed out, it will be reported as cash in lieu.

Thought so, but just wanted to be sure.

TY and HNY!

 

[Bob-WY]

Chances are multiple reverse splits means low money. These, I think, are done to boost price in bad times

 

[antelopedundee]

If the stock price drops under $1 for more than so many days the stock is in danger of getting de-listed from the exchange that it's on so they reduce the shares to raise the price. Usually a sign to probably GET OUT.

 

[SAJ-99]

If the stock price drops under $1 for more than so many days the stock is in danger of getting de-listed from the exchange that it's on so they reduce the shares to raise the price. Usually a sign to probably GET OUT.

Not sure good advice will be taken. I think this is the stock’s third RSS this year. Down 99.7% on the year. Delisting might be the least of a shareholder’s problem.

 

[antelopedundee]

Not sure good advice will be taken. I think this is the stock’s third RSS this year. Down 99.7% on the year. Delisting might be the least of a shareholder’s problem.

More like DELOSTING. I suspect the acquaintance's shares were cashed previously and they just didn't realize it. The loss was a few hundred so it's not the end of the world.

 

[SAJ-99]

More like DELOSTING. I suspect the acquaintance's shares were cashed previously and they just didn't realize it. The loss was a few hundred so it's not the end of the world.

Hopefully it was a cheap lesson to learn in the long run. I have a few of those myself.