What to make of companies boosting their stock prices.

As companies continue to feel the economic blow of COVID-19, management teams are forced to find ways of salvaging their businesses. In some cases, management teams have been forced to boost their stock prices, after falling below $1, as a way of meeting minimum price requirements to remain on stock exchanges.

This week, Ross Mac discusses the basic concept of companies announcing reverse stock splits and the implications of this. Topics include:

• The definition of a reverse stock split
• How companies manipulate their stock to increase its value
• How companies run the risk of being delisted from stock exchange markets
• What a reverse stock split may signify

If you have any questions you’d like to see answered on Maconomics, comment below or send a message. Thanks!

-----------

Subscribe at MrMaconomics.com