Open Question

David, Hello

SIRI ~ Reverse stock split ~ Isn't this going to hurt? Isn't this why some major
holders sold and the new issued Options to buy at .35 will be so valuable (hate
to even bring this up but it's glaring and many don't seem to be sayin:)
Appreciate comments...

Asked by Joelle 1 month ago - 3 answers - 931 views
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Nothing to do with SIRI, but nice to see you posting again. I thought you moved
to Bora Bora or someplace with white sand beaches and plentiful tropical drinks.
lol

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Thanks! Yes, well aware the option holders will be made whole as they should
be, I would do that... I just think many shareholders are not seeing clearly
with that... You have to not be overly concerned about time...

Answered by Joelle - Bookmark this User - Ignore this user
1 months ago - Report Abuse

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Options written before the announcement of a corporate action will be adjusted
to “make whole” the option holder. So, it will not negatively or positively
affect option holders. Theoretically, a split or contraction should not alter
the value of your holdings, it will simply change the number of shares you have,
but the price change will offset this. This action breaks down a bit due to
sentiment. Some may see the contraction as a negative or positive sign and bid
the stock up or down depending on their view. The intrinsic value of the company
should not change though.

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