22thoroughbred

7 Small Cap Stock Briefs

Elle, here is how it works, say you are given stock options to buy stock at $1....10,000 shares, if the stock did a reverse split of say 1-20 than you would have stock options with a strike price 20x the original or $20 and the number of shares would be 1/20th or 500 you can still buy $10,000 worth of stock, just different denominations. The same thing is done with normal options that anyone can buy as well...hope this clarifies.

7 Small Cap Stock Briefs

Elle-7...if the stock does a reverse split than any outstanding options have strike price adjusted for split as well....