WeTrade (NASDAQ:WETG) stock is on the move Friday after the company’s shares underwent a massive reverse stock split.
That reverse stock split saw WeTrade consolidate 185 shares of WETG stock into a single share. As a result, the company’s stock appeared to see an incredible 18,500% rally during pre-market trading this morning.
The reverse stock split only changes the number of outstanding shares that WeTrade has. It doesn’t change the stakes of shareholders in the company. Likewise, it also won’t affect the company’s market capitalization.
What’s Behind the WETG Reverse Stock Split
WeTrade enacted the reverse stock split as a way to regain compliance with Nasdaq’s listing requirements. The company consolidated shares to boost its price above the $1 minimum required to maintain its listing on the exchange.
It makes sense that WeTrade would undergo a reverse stock split considering its prior trading price. The company’s shares closed out Thursday at about 4 cents each. Following the split, shares of WETG stock are now trading at about $7.50 per share as of Friday morning.
Investors seem to be reacting positively to the WeTrade reverse stock split this morning. As of this writing, the company’s shares are up 1.2%. That’s good considering stocks often lose value following a reverse split.
Investors looking for more of the most recent stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock market coverage that traders need to know about on Friday! That includes the biggest pre-market stock movers this morning, the latest news on Nikola (NASDAQ:NKLA) stock, and more. You can read up on all of this news at the following links!
More Stock Market News For Friday
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Friday
- Dear Nikola (NKLA) Stock Fans, Mark Your Calendars for July 6
- Is a Massive Short Squeeze Brewing in Beyond Meat (BYND) Stock?
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risk.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, William White did not have (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.
