Why Office Depot Plunged by Almost 12% on Friday

On a dim day for the stock market on Friday, Office Depot (NASDAQ: ODP) fell much harder than the main equity indexes and a great many other companies. Reverse stock splits are relatively rare occurrences on the market. In Office Depot's case, "a reverse stock split could allow a broader range of institutions to invest in our Common Stock (including investors that, as a matter of policy, avoid or are prohibited from buying stocks that are priced below a certain threshold)," the company wrote in an April regulatory filing.