Why It Looks Like RumbleON Stock Jumped Today
Shares of RumbleON (NASDAQ: RMBL) appear to have jumped today, but in fact the change in prices was due to a 1-for-20 reverse stock split that was announced yesterday. After adjusting yesterday's closing for the split, the stock is actually down 9% as of 1:25 p.m. EDT.
RumbleON, an automotive e-commerce tech company, said yesterday that the split would take effect this morning under a new CUSIP number. Under a 1-for-20 reverse split, shares outstanding decline by a factor of 20 while the share price increases by 20-fold.
No fractional shares would be issued as a result of the split, and "[a]ny fractional shares that would result from the reverse stock split will be rounded up to the nearest whole share." RumbleON says that it will have 50,000 outstanding Class A shares and nearly 2.2 million Class B shares outstanding following the corporate action.
Source Fool.com
