This company develops drugs to treat chronic kidney disease.
Am i right in thinking now this has tanked overnight to under 1usd, there is a 30 day timer for the shares to go above 1 usd otherwise they get delisted ?
You asked the same question two weeks ago on the Arrival - ARVL - Share Chat topic. The answer you were given there doesn’t change for any other NASDAQ security. And your reply there
is still valid.
tl;dr Yes delisting possible. But many measures can be taken (including a reverse split) to avoid this.
Thanks, was just seeking comfirmation that i had understood correctly how this works as im new to trading. Incredible how things can change in a single day, do we see this sort of thing often? I guess pharma is hugely prone to this as they bet on one product trial.
Single stocks are in general bad news for such investors. You need to know the market and the businesses you are buying shares of so that you make an informed risk management decision. If you are unable to do this sort of due diligence then it is best to stick to major index ETFs and investment trusts. Read a lot before investing in companies. Another example of a bad move, I sometimes see people make on the forum, is to purchase shares that other people purchase without any real idea why those people are purchasing. The people they are emulating could themselves be gambling.
Biotech investing is generally high risk investing. Quick research shows me that the FDA denied approval two years ago. This points to my comment before about due diligence. More research would have led to understanding that this was a very high risk share that had already taken an enormous battering. You would need specialist knowledge to understand why the business had any chance of recovering. If you don’t understand the nature of the product and the risks associated with it you are gambling and perhaps relying on internet gossip (masquerading as informed opinion). I would take this as an important lesson in investment.
Thanks bitflip. Points taken ! I dont rely on gosssip in chats and forums though. Usually go with companies i know or i am customer of. In the name lf diversifying, i did take a small gamble on a few i dont know and sectors i dont usually have anybdealings with. I wont invest in those what i cant afford to lose, its usually beer money (or scratch card money) id rather gamble with then go to the pub with.