What will happen to FNM if its value stays below $1?

MONEYTREE answered 4 months ago …

well the word short is another way to trade stock, thats why i was confused.. A reverse split is something a company can do to raise there price of the share. They do this mostly for listing requirments, to stay on the exchange they are traded on. Lets say you owned 100 shares of FNM and the price of the stock was $1.00 they did a reverse stock split that was a 20 to 1 . All they do is take 20 of your shares and give you 1 back but at a higher price. You would now own only 5 shares but the price of the stock is now at $20.00, so you dont lose money just how many shares you own. This might be a little hard to understand u being a novice, but my advice would be to read all the things that have to do with the market and how it works, just do homework..... good luck