How is it possible that a company would go from a stock value of $514 million to just $3?

External question — Personal Finance Stack Exchange Author: Alexis Wilke Original post: https://money.stackexchange.com/questions/166779 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. As I was looking at Bio Green Medical Solutions' stock and found out that in 2004, it would be valued at US $514,080,000 PER SHARE , whereas today it looks like it's US $4.60 (on Oct 3, 2025). I would imagine that the shares were never valued in the hundred of millions and the number of shares were reduced over time. But I have a hard time understanding how a company can go from being (supposedly) billions if not a trillion or two when added on the market and go down in spiral for a whole year from day one and not decide to delist. Is there information about that free fall out there that I've missed? What I've found so far is current data such as the delisting of their preferred stock if they can't get their game together within the next 6 months or so. But nothing about their fall in 2004/2005... Note: I know the Hathaway stock is trading around $750,000. As far as I know that's the highest stock. It's not in the millions... which is why I suspect that BGMS has reduced their number of shares quite dramatically in the past 20 years.

External answer — Personal Finance Stack Exchange Author: littleadv Original post: https://money.stackexchange.com/a/166780 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. The stock went through 2 reverse splits just this year: May 12, 2025: 1:16 stock split July 7, 2025: 1:15 stock split There were more: December 18, 2023: 1:15 split April 20, 2020: 1:20 split My 31, 2016: 1:12 split August 7, 2012: 1:7 split May 26, 2006: 1:10 split ( source ) Let's do the math: 10*7*12*20*15*15*16 = 1:60,480,000 split from the original 2004 price. That means that the nominal price per share at the time was about $7.97. There were just waaaaaaaaaaay more shares. Price tracking sites usually track valuation, not nominal prices, so when splits happen they adjust historical prices accordingly. That's why the appearance of a humongous number even though in reality there was never a single share valued at such a price in real time. Yahoo's article explaining reverse splits here (about another company, but the principle is the same).