Reverse Stock-Split Watch: Is Intel Next?
In recent years, certain GPU makers like Nvidia have seen their share prices soar. But not Intel (NASDAQ: INTC). Over the past 12 months alone, shares of the struggling chipmaker have crashed by nearly 50%, sending the company's market capitalization below $100 billion for the first time in year.Intel's management team says it has a plan to reinvigorate growth. But before that happens, investors should prepare for a reverse stock split. A stock split typically occurs when a company's share price is so high that either investors errantly assume it's "expensive" or limit their holdings because they can't afford to buy another whole share. Reverse stock splits, meanwhile, are often enforced by exchanges that require companies to maintain a share price above a certain threshold. But sometimes, companies opt to execute a reverse stock split for aesthetic reasons.Continue reading
In recent years, certain GPU makers like Nvidia have seen their share prices soar. But not Intel (NASDAQ: INTC). Over the past 12 months alone, shares of the struggling chipmaker have crashed by nearly 50%, sending the company's market capitalization below $100 billion for the first time in year.
Intel's management team says it has a plan to reinvigorate growth. But before that happens, investors should prepare for a reverse stock split.
A stock split typically occurs when a company's share price is so high that either investors errantly assume it's "expensive" or limit their holdings because they can't afford to buy another whole share. Reverse stock splits, meanwhile, are often enforced by exchanges that require companies to maintain a share price above a certain threshold. But sometimes, companies opt to execute a reverse stock split for aesthetic reasons.
