What's Going On With Reddit Stock Friday?

Reddit, Inc. RDDT shares are moving lower on Friday following a report suggesting that shareholder Advance Magazine Publishers, Inc. plans to establish a credit facility using its stake in the company. Here’s what you need to know.

What To Know: According to Yahoo Finance, the publishing company aims to make as much $1.2 billion in a sale of 7.8 million shares for between $145.38 to $148.54 per share.

Even though the company plans to sell shares, Advance is not exiting its investment in Reddit. Instead, the company is borrowing against the value of its Reddit shares. To maintain its ownership stake, Advance is purchasing derivatives linked to its Reddit shares.

How To Buy Reddit Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Reddit's case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

See Also: Short Seller Andrew Left Targets MicroStrategy Stock As Hedge Against Bullish Bitcoin Bet: ‘Completely Detached From BTC Fundamentals’

RDDT Price Action: At the time of writing, Reddit shares are trading 9.01% lower at $143.84, according to data from Benzinga Pro.

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