October 3, 2022
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4:34Now PlayingToday American Virtual Cloud Technologies (AVCT stock) crashed a whopping 24% and in this video I go over why. First, AVCT stock went through a 15:1 reverse stock split.
That means that 15 shares combined to make one share, the value of the stock remains the same generally. Companies do this to meet NASDAQ requirements to stay above a dollar or reduce the number of outstanding shares.
100 million shares were also created which caused dilution in shares. Finally a lot of people didn't mention that the Microsoft buy out and lack of news on that may have caused the share price to drop.
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