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TOPIC: Existing Common Shares

Existing Common Shares 9 years 2 weeks ago #1514

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[Re: Existing Common Shares]
Most often, there is a reverse stock split of the original common stock and new shares issued to the new owners causing substantial dilution to the original common stock holders.

The only cancelation of stock that I have ever seen is in a bankruptcy. If it was possible to cancel stock in a public company without a bankruptcy, I doubt anyone would ever invest in a public company! I know I never would. Can you imagine Google saying that they canceled the stock wiping out $138 billion of equity! Not hardly.

As I have stated many times … investing in Shell Stocks is highly speculative and involves substantial risk. It is likely you will lose your entire investment!
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Existing Common Shares 9 years 3 weeks ago #1513

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[Existing Common Shares]

What happens to the common shares of the original shell company when a reverse merger occurs? Are there ever any cases where the common stock is canceled (similar to restructuring in bankruptcy as we saw with Idearc this past year)?

What are the potential losses associated with owning common stock in a shell company?

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