One of the most amazing stories in the stock market is about a company called Dryships, a Greek shipping company. When companies grow, their stocks often split, but Dryships has fallen on hard times, and its stock has reverse-split - by a whopping 48,000 to 1.
Let's say you owned 48,000 shares of Dryships back in early 2016. It had a reverse split of 1-25 that March, which means your
original 48,000 shares were now just 1,920 shares. Five
months later, in August, it did another 1-4 reverse split, reducing the
1,920 shares down to 480. Just three months later, there was a
1-15 split, so those 480 shares you now held were reduced to just 32
shares. In January of this year, Dryships did a
reverse split of 1-8, which reduced those 32 shares to just four. Then,
this week it did another reverse split of 1-4 shares, reducing your
original 48,000 down to just one measly share.
On a split-adjusted basis, Dryships was trading at over $8,000 per share back in early 2016. After all those reverse splits, it now trades at under $2 per share.
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