IWV - Dear BBIG Stock Fans Mark Your Calendars for June 27
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Shares of Vinco Ventures (NASDAQ:BBIG) stock are down 5% today despite news that the company will be added to the Russell 3000 Index. Weighted by market capitalization, this index tracks the performance of the 3,000 largest stocks in the United States. BBIG stock will also be eligible for inclusion in the Russell 2000 Index, which tracks the 2,000 smallest companies in the Russell 3000.
Vinco CEO Lisa King added the following:
“Inclusion in the Russell 3000 Index is an important milestone for Vinco Ventures, as it will provide increased visibility and exposure to the U.S. investment community. This has been a formative year for us – we have worked hard over the last year to achieve this recognition.”
King also explained that the company has several “exciting business updates” in the cards. Let’s get into the details
BBIG Stock: Vinco Ventures to Join the Russell 3000 Index
The inclusion of BBIG stock in the Russell 3000 will be effective after the market opens on June 27. Membership to the index lasts for one year and will be up for review after that period. FTSE Russell, which controls both indexes, determines inclusion based on “objective, market-capitalization rankings, and style attributes.”
As King notes, this inclusion will provide greater visibility and liquidity for BBIG. For instance, if an investor purchases a derivative of the index — such as the iShares Russell 3000 (NYSEARCA:IWV) exchange-traded fund (ETF) — they will also be purchasing a piece of BBIG stock.
Back in late May, Vinco also announced that it would delay the dividend distribution for its Cryptyde spinoff. Vinco orginally slated the distribution date for May 27. Now, the distribution is expected to happen “on or about the end of the second quarter” of the year. The distribution is still subject to contractual and regulatory obligations that must either be met or waived.
On the distribution date, shareholders of BBIG stock will receive one share of Cryptyde for every 10 shares of BBIG held. The date of record occurred on May 18, so it’s too late for new investors to receive the dividend. Although Vinco Ventures extended the distribution date, it doesn’t appear that they extended the date of record as well.
After the spinoff, Cryptyde will trade as “TYDE” on the Nasdaq. Vinco Ventures will continue to be tradable as BBIG stock.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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