Why Skillz Stock Dipped This Morning
Shares of mobile-gaming platform Skillz (NYSE: SKLZ) dipped a little when the market opened on Friday. As of 11 a.m. EDT, the stock was down 3%. It's down a little this morning because management announced the redemption of its publicly traded warrants. Here's why this matters to Skillz shareholders and what you need to do if you own the warrants.
When special purpose acquisition companies (SPACs) go public, they don't trade as shares but rather as units. SPAC units have two components: shares and warrants. In time, units get split into their composite parts and trade separately. Like all stocks, shares of SPACs are small ownership stakes in the company. By contrast, the warrants aren't ownership stakes but rather represent the right to buy shares at a predetermined price if certain conditions are met.
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Source Fool.com
