Nikola shares are trading lower after the company announced a 1-for-30 reverse stock split.
Portfolio Pulse from Benzinga Newsdesk
Nikola shares are trading lower after the company announced a 1-for-30 reverse stock split.
June 20, 2024 | 2:47 pm
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Nikola shares are trading lower after the company announced a 1-for-30 reverse stock split. This move is often seen as a way to boost the stock price by reducing the number of shares outstanding, but it can also signal financial distress.
The announcement of a reverse stock split typically indicates that a company is trying to increase its stock price by reducing the number of shares outstanding. However, it can also be perceived as a sign of financial trouble, leading to a negative market reaction.
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