I know how it how a reverse stock split works but if a stock I own is leveraged, how does that work out? Is it just x3 (as an example with 3x leverage).
In: Economics
The stock being leveraged should not affect the split, as the total value of your held stock has not changed. Assuming a simple 2:1 reverse split, if before you held 100 shares trading at $5 (total value $500) you would now have 50 shares trading at $10 (total value remains $500).
Nothing would change with regard to your holding other than the number of shares involved. Everything is adjusted according to the new share numbers.
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