It doesn't really spike on its own; it's all proportional. So if you had 1000 shares worth $0.30 each and they did a 10-1 split, you now have 100 shares worth $3 each. So while the prices appears to have "skyrockted" $2.70, in reality your shares are worth exactly the same; it's all proportional.
Though what some companies who are on the verge of delisitng or bankruptcy will do is do a reverse split (to get their share price up), then pump their stock with news (to bring in more investors/bagholders), then do a dilution to raise a bunch more money real quick. So if there's a company that's on the verge of delisting or bankruptcy that just did a reverse split, look for possible news and ride that wave (BUT DONT HOLD ON OR YOU'LL BE SCREWED WITH DILUTION)
It doesn't really spike on its own; it's all proportional. So if you had 1000 shares worth $0.30 each and they did a 10-1 split, you now have 100 shares worth $3 each. So while the prices appears to have "skyrockted" $2.70, in reality your shares are worth exactly the same; it's all proportional.
Though what some companies who are on the verge of delisitng or bankruptcy will do is do a reverse split (to get their share price up), then pump their stock with news (to bring in more investors/bagholders), then do a dilution to raise a bunch more money real quick. So if there's a company that's on the verge of delisting or bankruptcy that just did a reverse split, look for possible news and ride that wave (BUT DONT HOLD ON OR YOU'LL BE SCREWED WITH DILUTION)
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