American Rebel (NASDAQ:AREB) stock is a hot topic among traders on Tuesday after the safe manufacturer and self-defense company underwent a reverse stock split.
That reverse stock split saw the company consolidate every 25 shares of AREB stock into a single share. The reverse split went into effect before markets opened this morning. This has AREB’s issued and outstanding shares decreasing from 16.9 million to 677,000 shares.
One thing investors will keep in mind is that this doesn’t change the market capitalization of the company. It also won’t alter the stakes that shareholders had in the company before the split went into effect.
Why Did AREB Go Through a Reverse Stock Split?
The reverse stock split has allowed American Rebel to increase the price of its shares to avoid delisting. Prior to the reverse split, the company’s shares were trading at 19 cents apiece. That’s well below the minimum bid of $1 per share required to list on the Nasdaq.
Following this reverse stock split, AREB stock is seeing heavy trading today. That has some 5 million shares on the move as of this writing. For the record, the company’s daily average trading volume is closer to 52,000 shares.
AREB stock is up 13.8% as of Tuesday morning alongside the reverse split and heavy trading.
Investors seeking more of the most recent stock market news will want to keep reading!
We have all of the biggest stock market stories that traders need to know about on Tuesday! A few examples include what has shares of Black Diamond Therapeutics (NASDAQ:BDTX), Walgreens Boots Alliance (NASDAQ:WBA) and Enovix (NASDAQ:ENVX) stock on the move today. All of that news is ready to go at the following links!
More Tuesday Stock Market News
- Why Is Black Diamond Therapeutics (BDTX) Stock Up 82%?
- Why Is Walgreens Boots Alliance (WBA) Stock Down 9% Today?
- Enovix (ENVX) Stock Jumps 13% as U.S. Army Places a Big Order
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
