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Many people have been hyping the fact that shares of American Internation Group (AIG) increased $10.15 today, an increase of 26%.

Shares were selling for $47.84 at the closing bell. One would see that and think, "Wow, AIG has made a strong comeback from being at about a dollar a share only a few months ago."

That would be a good point, but one must know what recently happened.

Shareholders voted on a 20-1 reverse split, which gave it a stock price of $19.65 as of July 1. That meant that stockholders actually own less of the company. This is common fair manipulation, which is perfectly legal, of stock price. This is common for companies to prevent delisting in an exchange, whereas AIG is listed in the New York Stock Exchange (NYSE).

Adjusted in real terms, AIG will need to get to a stock price of about $2,000.00 to be where it was at its previous peak.

Congratulations shareholders, AIG increased 26% in one day. If AIG increased 100% the next day, then it would still be more than $1,900.00 off its peak of about $2,000.00 a share.
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