6.22.2019

A window of opportunity

I have been thinking why a stock usually loses value in connection with reverse split. The only logical explanation for this as I see is that the function auto sales.

When a reverse split occurs, at least on my accounts, my profits will double for a few days before the banks have been able to adjust their entry values. If I have a loss on the purchase, it decreases or becomes a profit. If I have activated auto sales at a specific profit percentage, my holdings are sold, even though I really have not made any profit.

One man's loss is another man's gain.

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