Today is likely to go down in stock market history. A stock like Atos suddenly goes through the roof. At times, price gains of over 23% were recorded. Very good news has ensured that interest in the share has increased massively again.
The background to this is a so-called reverse split, which was announced today and is not the norm on the stock markets.
Why the reverse split is unavoidable for Atos
The share has a price of just 0.00042 euros and is therefore far too cheap to attract the interest of serious investors. They are always worried about falling victim to price manipulation in such situations.
The reason is obvious: if you want to, you only have to invest a small amount of capital to move the price. Every price determined on the stock exchanges is based on a completed trade between supply and demand. If only minimal amounts are required to influence the price, the probability of manipulation increases.
How the reverse stock split works and its advantages
A reverse split is therefore the logical consequence. In this measure, several shares are combined into one larger share. Depending on the ratio, the price of the new share, which embodies several previous shares in one structure, will rise significantly. This could invalidate the manipulation argument, as stock market experts confirm.
Market reaction and future prospects
Although the exact date for the reverse split has not yet been determined, it is expected to be implemented quickly. The stock markets are already reacting positively to this announcement.
Wednesday's considerable gain, together with rising trading volumes, indicates growing interest in the stock. Although the situation is still a long way from being fully stabilized, the stock market reaction indicates the direction it could take if the split is actually carried out.
Speculative potential until implementation
The period up to the implementation of the reverse split should also be interesting. It would not be unusual for speculation to begin during this phase. The share price could therefore rise again significantly in just a few days.
However, it should be noted: Without the reverse split, the share will not be able to leave the penny stock area. However, the announcement offers an opportunity for speculative investors that many traders have been waiting for for some time. Even if the exact timing has not yet been determined, the current low price for the Atos share should be a thing of the past in a few weeks.
Source: www.finanztrends.de
