How do I find potential reverse split round-ups? Part 1

As mentioned before, each reporting company wishing to conduct a reverse split must specifically report so to the SEC in a document known as a DEF 14C. According to the SEC, a DEF (definitive) 14C refers to "All types of definitive statements, excluding: mergers or acquisitions, contested solicitations and special meetings."

However, before there can be the definitive document, there must be the preliminary document, known, in this case, as the PRE 14C. According to the SEC, a PRE 14C is, then, "All preliminary information statements, excluding, mergers, contested solicitations and special meetings."

So, if a company wishes a reverse split on its unsuspecting holders, it must state as much in those documents. Specifically, it must state in what proportion the reverse split is to be (e.g. 1:2, 1:10, 1:10,000), as well as the terms given to those who will hold fractional shares as result of the reverse split.

This knowledge can aid us, then, in finding companies who are planning to carry out reverse splits with terms we find favorable regarding our desire to profit from a round-up.

Even more specifically, we can search the SEC's database for these filers by using certain search phrases.

For example,

• Go to the SEC website
  
• Scroll down to and select "search for company filings"
• Scroll down to and select "full-text search"
• Click advanced search
• Enter "reverse split with special treatment"
• Select Def 14C as the form type from the drop-down
• Then click "search".