Alright, it's time for some investing education.
What is a reverse stock split and why should investors care?
A reverse stock split is when a company reduces the number of its shares outstanding.
This means that shares of the company will become more valuable because there are less of them.
It is the opposite of a common stock split, where a company will have more shares, but those shares are not as valuable.
There are a number of reasons why a company may be considering a reverse stock split, but one of the most popular reasons is for a company to avoid delisting on an exchange.
This means that an exchange--such as the New York Stock Exchange or NASDAQ--would remove a company from the exchange that the company trades on.
The New York Stock Exchange has a rule that a company that trades under $1.00 will be delisted after 30 days.
But, there are other reasons for a company to go through a reverse stock split.
The company will have shareholders vote on the proposal during Blue Apron's June 13 investor meeting.