I had a 100 shares of Graphene Technology. I bought 70 shares at $1.43… It went down to 0.12 so I was down. I bought 30 more shares at that price to put me at 100 shares.
Today its grapghjet technology and I have 1.666666 shares at 0.12.
Can someone ELI5 what happened?
Thank you, for all the replies. Now I understand. Thank you very much.
"A stock split is like cutting a pizza. Whether you cut it into four or eight slices (or you square-cut it into 24 slices), it’s still the same pizza.
That’s a stock split. A company may split its shares by a factor of 2:1, 4:1, or even 10:1. The number of shares increases, but the price per share goes down in proportion, so in the end, the company’s total value is the same before and after a split." From brittanica
But the opposite can also happen. Companies can retract the number of stocks. So if a company has issued 100 stocks at 1 dollar, it’s worth 100 bucks. Say the value goes down to 10 cents. It’s now worth 10 bucks. So the company does a reverse stock split to end up with 10 stocks total all valued at 1 dollar.
They should have informed you by e-mail of this decision. They probably decided to do this because of a major setback.
Also it looks like they went through a merger so take the pizza analogy and add another pizza of a completely different size.
You got a reverse split.
In some cases, stock performs so well and the shares become so costly that the shares get split into smaller pieces. You may own one share that gets split into 2, 5 or 10 shares.
In the reverse scenario, stock that performs badly will sometimes undergo a reverse split. THis combines shares, so your share count is reduced, despite the share cost going up.
I had a reverse split happen with some canna stock I bought, I had 100 shares nosedive and they reverse split it to 10 shares. It’s somewhat common for this to happen in either direction.
you get what you pay for. stock was cheap and whatever made it cheap continued and they fell below listing requirements so had to do a reverse split.
