Not trying to be smart ass or anything. Just don't understand the whole stock thing. What happens if the stock keeps dropping? Can they still do a reverse something to bring back up? Been out of steady work for over 3 years, never want to see anyone lose their job. Just asking a few questions if anyone has some insight.
The stock price on the open market isn't set by the company. The price is only whatever buyers and sellers pay/sell it for on the open market. A company will do a reverse split when the share price drops below a certain level ($1 per share usually) in order to keep the stock from being delisted on the exchange. The value of your stock holdings don't change because of a split alone. For example, if you had 10 shares valued at $1 per share before the reverse split, after the split you might have 1 share worth $10 per share if it were a 1 for 10 split.