Company Announces 1 for 4,000 Reverse Split

Reverse splits are when a company exchanges shares to shareholders giving them fewer new shares in exchange for the old shares existing shareholders own. This is usually done to increase the price of the shares to maintain listing requirements. I've seen 1 for 10 reverse splits, even 1 for 100, 1 for 200, and 1 for 250 shares. But the reverse split of Raven Moon Entertainment, Inc. (RAVI.OB), a producer of family entertainment programs, is the highest I've seen in a long time with a 1 for 4,000 reverse split. What is really interesting is that the new shares are still only trading at a penny a share.

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