Why ChargePoint Stock Crashed Today
Shares of ChargePoint (NYSE: CHPT), the electric car charging company, tumbled 14.3% through 10:50 a.m. ET Monday morning after conducting a 1-for-20 reverse stock split.
Image source: Getty Images.
Like the name suggests, a reverse stock split is the opposite of a stock split. Instead of taking one share of stock and slicing it into several smaller shares, each costing less and representing a smaller ownership stake in the company, a reverse split merges several existing shares into one larger, higher-priced share.
Source Fool.com
