Carvana (CVNA) is suffering with a share price of $3 down from $223 a year ago (yikes!). The company could likely go bankrupt. Assume, Carvana tries to solve this problem via issuing a 1:100 reverse share split when their share price is at $3 a share. Has CVNA done anything to solve their problem of being 99% down in stock price and potentially headed for bankruptcy via issuing a 1:100 reverse split? Carvana has solved their financial problems via the 1:100 reverse split. Now, their share pric will be around $300 and they will not be near bankruptcy. Carvana has done nothing to solve their financial problems via the reverse split, and institutional investors will not change their behavior towards the stock. Carvana has done nothing to solve their financial problems via the reverse split, however; many institutional investors have mandates to not hold stocks under $5 per share, so at least these investors won't be forced to sell the stock based on its price alone. None of the above are true