Citigroup announces 1-for-10 reverse stock split

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

 

not sure if that is the good idea.

 

What will daytraders trade now????

 

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.

 

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

 

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.

 

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

 

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.

 

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