I bought a stock a couple years ago at $18 per share and it has gone all the way down to $2 per share (not my proudest moment). The stock underwent a reverse stock split of 1:10 and now, instead of purchasing 1000 shares at a $18 stock price, it is saying now that I bought 100 shares at a $180 stock price. I understand the math here this is not what im confused about.
What i am confused about is that the stock price never moved to reflect the reverse stock split, it just stayed at the same value it was trading at both before and after the stock split occured! This means that if the stock price was at $1.80 per share the day before the reverse stock split, that would mean i would be down 90% my investment, but if the share price was the same after the reverse stock split but the price in which i bought my shares is now $180 per share, that means that overnight im suddenly down 99.9%! How the hell does this make any sense! This is fraud no??? What am i missing here… im extremely confused!
