Maxeon Solar Technologies (MAXN) shares are experiencing a significant drop on Monday, following the company’s announcement of a 1-for-100 reverse stock split. This move comes after the Nasdaq Stock Market issued a Staff Determination letter, putting Maxeon on notice of a potential delisting. The warning stems from the company’s stock price trading at $0.10 or less for 10 consecutive trading days. To avoid delisting, Maxeon has requested a hearing and hopes that the reverse stock split will elevate the stock price above the Nasdaq’s minimum bid price requirement of $1 per share.
For those interested in participating in the market for Maxeon Solar Technologies (MAXN), whether it’s purchasing shares or attempting to short the company, there are options available. Buying shares typically involves establishing a brokerage account. Numerous trading platforms offer this service, including the ability to purchase fractional shares, allowing investors to own portions of stock without buying an entire share. This is particularly beneficial when dealing with high-priced stocks, like Berkshire Hathaway, where purchasing a single share can be expensive. In the case of Maxeon Solar Technologies (MAXN), which is currently trading at $0.08, an investment of $100 would grant you 1,250 shares.
For those seeking to bet against the company, the process is more intricate. Access to an options trading platform or a broker that allows short selling is necessary. Shorting a stock involves borrowing shares from a broker and selling them in the market, hoping to buy them back at a lower price later, thereby profiting from the price decline. Alternatively, if your broker offers options trading, you can purchase a put option or sell a call option at a strike price above the current trading price. Both strategies allow you to benefit from a decrease in the share price.
It’s crucial to remember that the stock market is inherently volatile, and investing carries risks. Always conduct thorough research and consult with a financial advisor before making any investment decisions.
