SoFi Is Contemplating a Reverse Stock Split. Here's What Investors Need to Know
In a recently filed proxy statement for its upcoming annual meeting on July 12, SoFi (NASDAQ: SOFI) revealed that shareholders would vote on an amendment to grant the company's board of directors discretionary authority to conduct a reverse stock split sometime over the next year. Stock splits, in general, can certainly draw interest from the market, and not always in a positive way.
Let's take a look at exactly what shareholders will vote on at the upcoming meeting and what a reverse stock split could mean for SoFi shareholders.
To be clear, shareholders are not voting on whether the company should conduct a reverse stock split. They are simply voting on whether to give the board the power to institute a reverse stock split sometime over the next year if the board deems it in the company's best interest. It's possible the board will decide not to go through with it even if granted the authority.
Source Fool.com
