The Effect Of Reverse Stock Splits On Company Valuation

A reverse stock split is when a company reduces the number of its outstanding shares while increasing the price per share. If a firm executes a 1-for-10 reverse split, every 10 shares an investor owns turn into one share. However, the value of the investment doesn’t change. For example, if you held 100 shares worth … Read more

The Importance Of Industry Trends In Equity Valuation

Investing in stocks is like buying a slice of a business. But how do you decide which slice is worth your money? Sure, checking a company’s financials is a great start, but that’s only half the picture. You also need to consider the bigger stage on which the company plays—its industry. Understanding these trends is … Read more