Ideanomics Stock Is Tumbling: What's Driving The Action?
Portfolio Pulse from Adam Eckert
Ideanomics Inc (NASDAQ:IDEX) announced a 1-for-125 reverse stock split, reducing its authorized common stock from 1.5 billion shares to 12 million. The split is aimed at regaining compliance with the Nasdaq's $1 minimum bid requirement for continued listing. The company is also set to report Q2 financial results on Aug. 25. Following the announcement, IDEX shares fell by 25.5%.
August 23, 2023 | 2:04 pm
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Ideanomics' announcement of a 1-for-125 reverse stock split led to a 25.5% drop in its share price.
The announcement of a reverse stock split typically leads to a decrease in the company's share price as it often indicates financial distress. In this case, Ideanomics' shares fell by 25.5% following the announcement.
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