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Virgin Galactic announces reverse stock split
Global Banking & Finance Review®
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(Reuters) -Space tourism company Virgin Galactic announced a 1-for-20 reverse stock split on Wednesday, sending its shares down 19% in extended trading.
(Reuters) -Space tourism company Virgin Galactic announced a 1-for-20 reverse stock split on Wednesday, sending its shares down 19% in extended trading.
The stock split is expected to go into effect on June 14 after markets close and resume trading on a split-adjusted basis after markets open on June 17.
The company is planning the stock split to meet minimum share price requirements to continue listing on the New York Stock Exchange, Virgin Galactic said.
The company’s shares were trading at 70 cents per share after the bell, and have fallen more than 65% so far this year.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar and Shounak Dasgupta)
A reverse stock split is a corporate action where a company reduces the number of its outstanding shares, increasing the share price proportionately. This is often done to meet minimum price requirements for stock exchanges.
The New York Stock Exchange (NYSE) is one of the largest stock exchanges in the world, where stocks of publicly traded companies are bought and sold.
A stock split is a corporate action that increases the number of shares in a company, reducing the price per share while maintaining the overall market capitalization.
A stock split does not change the total value of shares held by shareholders, but it can affect the stock's market perception and liquidity.
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