Citigroup announces 1-for-10 reverse stock split

[Marc to Market]

What are all those people who make a living trading C gonna do now?

http://money.cnn.com/2011/03/21/new...erse_stock_split/index.htm?source=yahoo_quote

 

[emg]

not sure if that is the good idea.

 

[JamesL]

What will daytraders trade now????

 

[Marc to Market]

Good traders know how to adapt and make money in the even the toughest of times. In other words, they'll move on to other symbols.

Quote from JamesL:

What will daytraders trade now????

 

[Butterball]

We used to relentlessly short the reverse splits in the post tech bust days. Not sure about C here.

 

[Marc to Market]

Why was this thread moved to the stocks forum? It's more about trading than stocks since it'll have a profound effect on day traders, prop shops, even clearing firms.

 

[NY0BScalper]

This should be in TRADING forum as above posted said. This makes is going to effect things on the business side significantly.

 

[zdreg]

you will trade 1/10 the number of shares and save on commissions. why should there be any effect?

 

[Maverick74]

Quote from zdreg:

you will trade 1/10 the number of shares and save on commissions. why should there be any effect?

The effect is the rebate these guys earn on the stock. Not a chance in hell those one trick pony rebate prop firms will touch this stock ever again.

 

[Marc to Market]

Because some traders' realized profits are significantly higher than their commissions...

Quote from zdreg:

you will trade 1/10 the number of shares and save on commissions. why should there be any effect?