# Stock Split Alert: What Happens When Companies Reverse 10-to-1?

Banzai International (BNZI) just announced a 1-for-10 reverse split effective July 8, 2025—here's what that actually means for your portfolio.

**The Math**: 10 shares at $0.50 = 1 share at ~$5.00. Your total value doesn't change, just the share count and price shrink/expand.

**Why Now?** Companies pull this move when stock price tanks below listing minimums (Nasdaq/NYSE have rules). It's both a compliance fix and a PR move—"higher share prices = more credible" is psychology, but it works on institutional investors who have price floor requirements.

**Real Talk**: This isn't inherently bad. But it's often a red flag—companies doing reverse splits are usually fighting delisting risk or bleeding credibility. Banzai's move signals the stock was underwater and needed resetting.

**You're Not Alone Seeing This**: Comstock Inc. (LODE) did 1-for-10 in Feb 2025 (237.7M → 23.8M shares). Arrowhead Pharmaceuticals (ARWR) and China Pharma (CPHI) followed suit earlier this year. It's a playbook move when fundamentals are shaky.

**What to Watch**: Don't just see the split—check earnings trends, delisting warnings, and whether the company's actually improving or just cosmetic-fixing. A reverse split alone doesn't kill stock value, but it often signals deeper problems brewing.