Canopy Growth: Is Another Reverse Stock Split Inevitable?
Investors often get excited about stock splits. They bring a stock down to a lower price, which can lead to more trading and potentially a rally. A reverse stock split, however, can have the opposite effect. A company normally deploys this when its share price has fallen so low that it needs to consolidate shares to get it back above $1, to ensure it satisfies the stock exchange's requirements.
Canopy Growth (NASDAQ: CGC) is no stranger to reverse stock splits, having done one a few years ago. Now, however, with its share price declining sharply and back below the $1 mark, the inevitable question looms: Is another reverse stock split on the horizon for the cannabis company?
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Source Fool.com
