Monday 12/4/2023
See article on last page of today's WSJ. There are 3,501 stocks on the NASD. 464 have fallen below $1, another sentence cites 557. In early 2021 there were only a dozen.
First this demonstrates the kind of blow off speculation which occurs at a top. Our previous post addressed the over weighting of seven stocks across multiple idexes. It speaks volumes that the average could be this high with hundreds of stocks in the index worth nothing, more or less.
Second this is evidence the bear market does exist but it is progressing across different sectors.
Stocks trading for less than $1 are de-listed. So the solution is a reverse split. If you own ten shares worth $1, after the reverse you own one share worth ten dollars. GE had to do this after being kicked out of the INDU. It does nothing to solve the real problem, lack of value but keeps the shares on the NASD.
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