Why Office Depot Plunged by Almost 12% on Friday
On a dim day for the stock market on Friday, Office Depot (NASDAQ: ODP) fell much harder than the main equity indexes and a great many other companies. The clear reason for this is the retailer's announcement that its board of directors has approved a proposed 1-for-10 reverse stock split. This will be enacted just after market close next Tuesday, June 30.
Reverse stock splits are relatively rare occurrences on the market. They usually happen when a company wants or needs a relatively quick way to lift its stock price.
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Source Fool.com
