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Why Lucid Group Stock Is Sinking Today

TheMotleyFool

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Shares of Lucid Group (NASDAQ: LCID) are falling on Tuesday, down 8.8% as of 2:08 p.m. ET. The drop comes as the S 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) were both down slightly.

Lucid filed a proxy statement with the Securities and Exchange Commission (SEC) to initiate a reverse stock split.

Lucid filed the statement showing that it will seek shareholder approval for a 1-for-10 reverse stock split. This would mean that after the split is executed, Lucid shareholders would own a tenth of the shares they owned prior to the split, but each share would be worth 10 times as much. To be clear, this does not change the overall value of investors' positions.

Source Fool.com

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