Why Groupon Stock Just Tumbled 12.5%
The clock is ticking down on trading for Wednesday, and Groupon (NASDAQ: GRPN) stock is ticking down with it -- off 12.5% in the day's final 15 minutes.
Why is that? As Groupon advised this morning, its Annual Meeting of Stockholders yesterday approved a 1-for-20 reverse share split. In this scenario, investors who owned, say, 1,000 shares of the Groupon stock this morning will end up with just 50 shares when trading resumes tomorrow.
"The reverse stock split will become effective at 5:00 p.m. Eastern time on June 10, 2020," said Groupon. But it appears a lot of investors aren't interested in waiting for the closing bell to ring. They're selling their shares ahead of the reverse split.
Source Fool.com