Hi everyone,
I am not trading for long time, so I am missing some knowledge here and I truly believe Reddit is the best place to seek for help (lol). I do own stocks of a company and they announced reverse share split (link to the article – [https://finance.yahoo.com/news/orpea-announces-details-expected-timetable-070000100.html](https://finance.yahoo.com/news/orpea-announces-details-expected-timetable-070000100.html) )
Let´s say I do own 1 mil of shares, with the average price of 0,0169€ / share. My question here is, during the exchange period, is price of the share globally considered being 0,01€ or is my buying price of that specific share being considered? In above mentioned announcement is part saying, that “The Reverse Share Split is a purely technical exchange transaction with no direct impact on the total value of the Company’s shares held by each shareholder.”
If my 1 mil shares is having current value of 16k€ is it going to end up, that after exchange I will loose 6k€ due to exchange or is the exchange made based on “value of shares” rather then “amount of shares owned”?
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\[(1 000 000 existing shares / 1 000 new shares) \* 10€ nominal new share price\] = 10k€ shares value
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Sorry for silly question, this particular purchase was something like “ah those are for free, let´s buy it and keep it laying down 3-4-5 years”, but now I am not sure how this is going to end up for me and If I am supposed to lose money due reverse share split, I might take it out and invest it somewhere else.
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**EDIT:** Announcement of reverse share split is 2 days old. I have made a research prior to buying stocks of this company, I knew they are going through restructuralization of the whole company and board of directors and basically they are trying to bring the company back. I have also considered the business area where this company operates and nursing / care seemed fine to me. I don´t want to delete any parts of my original post but also don´t want to look like a dumbo who sorted stock price and bought randomly the cheapest stocks available without thinking or research.
Any explanation and advice is very welcome, thanks folks!
