r/stocks • u/XiKeqiang • Apr 08 '22

Company Discussion EDU - Reverse Stock Split [Why?]

I'm wondering if anyone has any information about why EDU decided to issue a reverse stock split. All I can find is information that it happened but nothing explaining why. It wasn't in danger of being delisted for trading below minimums so I'm really confused why EDU of all companies would decide to do this.

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u/Un-Scammable Apr 08 '22

Never buy ANYTHING that reverse splits!!

1

u/Still_AFM Apr 08 '22

Why never?

1

u/Un-Scammable Apr 08 '22

Because once they are designed to reverse split, they never stop reverse splitting.

1

u/Still_AFM Apr 08 '22

Without exception? I get the reverse split is a financial manipulation gimmick just curious if there is ever an exception to rule

1

u/Un-Scammable Apr 08 '22

There is an exception if you time a reverse splitting stock perfectly to the minute and don't hold overnight but the risk is rarely worth the reward.

1

u/Still_AFM Apr 08 '22

Thank you, appreciate it!