Beneficient shares are trading higher Friday after the company announced it has consummated a transaction to increase its permanent equity by $126 million.

The Details:

The previously announced transaction redesignated $126 million of its preferred equity as non-redeemable. As a result of the transaction, which was approved by the company’s founders holding the majority of the preferred equity, Beneficient expects approximately $126 million of temporary equity to be reclassified to permanent equity on its balance sheet as of Sept. 30, 2024.

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Beneficient shares are racing higher in Friday's premarket session on heavy trading volume as investors weigh the company's announcement. According to data from Benzinga Pro, Beneficient's stock has a float of only 3.1 million shares and more than 17 million shares have already changed hands on Friday. 

How To Buy BENF Stock:

By now you're likely curious about how to participate in the market for Beneficient – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

BENF Price Action: According to Benzinga Pro, Beneficient shares are up 59.2% at $1.89 at the time of publication Friday.

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Image: Gerd Altmann from Pixabay