Why Faraday Future Stock Zoomed 19% Higher Today
Bucking the general trend over its lifetime as a stock, electric vehicle (EV) maker Faraday Future (NASDAQ: FFIE) saw a nice price boost on Monday. The pre-production company's shares accelerated nearly 19% forward, on news that it might just manage to keep its stock listed on the Nasdaq after all.
After market hours on Friday, Faraday Future announced the results of a special meeting of stockholders convened the previous day. Three proposals were up for a vote, all of which passed by a wide margin.
Arguably the one with the most immediate effect was a measure authorizing the EV maker to do a reverse stock split. While stock splits, reverse or otherwise, have no material effect on a company's operations, they do change the math of its share count and price. A reverse stock split reduces the number of shares outstanding; since the market capitalization remains the same, the per-share price rises.
Source Fool.com
