Nio Stock Soared Today. But Beware: It Could Crash.
This is no fear-mongering. Shares of Nio (NYSE: NIO) surged Friday morning as investors took note of the company's 20F annual report filed today and some good news coming in from China, Nio's domestic market.
Yet, when I dug deeper into the annual report, one line buried under the several risk factors that Nio listed made me sit up and take note. It's the kind of thing that could send shares plunging if it becomes a reality.
Investors might know that foreign stocks, particularly Chinese stocks, face the threat of being delisted from U.S. stock exchanges if the underlying companies fail to comply with the audit rules as outlined by the U.S. Securities and Exchange Commission (SEC) under the Holding Foreign Companies Accountable Act (HFCAA).
Source Fool.com
