Why Tonix Pharmaceuticals Stock Dived by Over 31% Today

All stocks have bad days at least once in a while, but Monday for Tonix Pharmaceuticals (NASDAQ: TNXP) was one of the ugliest trading sessions in its history. The company's stock lost nearly one-third of its value after the company announced a financial engineering move that sent investors scrambling for the exits.

Tonix announced Monday afternoon that it is effecting a 1-for-32 reverse split of its common stock. That shock-to-the-system move is occurring in the very near future; the company said it would be effective at the start of trading this Wednesday, May 17.

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Source Fool.com