Trxade Health (NASDAQ: MEDS) can be said to be up 1,506% today, or perhaps 7% is more accurate? The 1,506% comes from one of the ticker trackers at investing.com. Seeking Alpha has it at 1,300%. NASDAQ has it at 7% and change. So, who is right? The lovely thing is that all of them are, it just depends upon what definition of price we want to use.
The useful one, for most purposes is the NASDAQ one:
Trxade Health stock price from NASDAQ
However, do note that they're listing the last close as being at $0.31, at thirty one cents. Today's price is at $5.90, which most certainly isn't only 7% up on 31 cents. In this is the difference between nominal and real prices.
The explanation is here: “ TRxADE Health, Inc. (Nasdaq: MEDS) (the “Company”), today announced that its board of directors has approved a 1-for-15 reverse stock split of its common stock. The reverse stock split will take effect at 11:59 p.m. Eastern Time on June 21, 2023 and will be effective at the open of business on June 22, 2023 (the “Effective Time”). As a result, at the Effective Time the Company's 10,210,878 outstanding shares of common stock will be reduced to 680,726.”
The problem being solved is that NASDAQ (and the NYSE) have this idea that penny stocks are disreputable. The home of those who would manipulate, even cheat stockholders. So, in order to remain on the main exchanges your stock price must be above the minimum $1 bid price. Trxade Health clearly wasn't doing that. The answer is to simply declare that what used to be 15 separate pieces of stock will now be just the one. The stock price therefore goes up mechanically by 1,599%, or 15x.
The difference between the different listings here is that NASDAQ recalcuates the old prices once such a stock split (either way, forward or reverse) which some of the other tickers do not.
The real price change in Trxade Health today is the 7% listed by NSADAQ.
