Avenue Therapeutics Inc (NASDAQ:ATXI) shares are trading lower by 28.5% to $0.09 during Wednesday's session after the company announced a reverse stock split.
The company is implementing a 1-for-75 reverse stock split of its common stock, effective April 26. This decision, approved by the company's Board of Directors and a majority of stockholders, aims to meet Nasdaq's requirement of maintaining a minimum bid price of $1.00 per share for continued listing.
Following the split, the outstanding shares will decrease from about 44.7 million to approximately 0.6 million, with adjustments made for fractional shares.
How To Buy ATXI Stock
By now you're likely curious about how to participate in the market for Avenue Therapeutics – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy 'fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.
In the the case of Avenue Therapeutics, which is trading at $0.1 as of publishing time, $100 would buy you 1000.0 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to 'go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
According to data from Benzinga Pro, ATXI has a 52-week high of $1.25 and a 52-week low of $0.089.