posted on
Jul 02, 2011 09:31PM
For a cuurrent s hare split look at Lululemon, LLL on Toronto and LuLu on NASDAQ Their shares are splitting effective July 8. Share splits are usually done to reduce the share price to make it easier for more people to purchase reducing the perceived risk because the stock theoretically can not fall as far.
Reverse splits on the other hand reduce the number of shares outstanding and more often reduces liquidity and in my experience most times the share price falls from where it was previously
I do think it is way premature to think of either scenario in SLI' S case