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THQ Not Giving Up Their Nasdaq Stock Exchange Listing Just Yet

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Posted on May 29, 2012 AT 02:19pm

THQ may be facing widespread financial troubles, but the company is still making efforts to repair the damage done to their business. One such move involves staying on the list of groups represented in the Nasdaq Stock Exchange, and in order to do so, the developer is reverse-splitting their stock.

For those not versed in financial lingo, a reverse stock split (also called a “stock merge”) involves the current shareholders consolidating the stock that they have into fewer shares for more value per share. It’s an artificial way to inflate the value of your stock, but you have less of it to use. However, such a move is necessary for THQ to remain listed. Nasdaq’s minimum threshold for stock listing is $1.00 USD per share, called a minimum bid requirement.

Overall, it doesn’t really change the value of the company, but the structure. According to Gamasutra, THQ will enact this option on July 5th, well before the July 23rd deadline.

 

Source: Gamasutra

McKinley Noble, Contributing Editor
McKinley Noble has been writing about video games for seven years as a blogger and journalist, with each job adding to his painstakingly alphabetized collection of retro gaming memorabilia. When not cracking jokes about the gaming industry, he's a talking encyclopedia when it comes to mixed martial arts and anything MMA related. Follow him on Twitter: @KenTheGreat1. Meet the rest of the crew.

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