AMC Has Found Another Way to Upset Shareholders
AMC Entertainment (NYSE: AMC), one of the largest movie-theater operators in the world, was hit hard by the coronavirus pandemic. It's still struggling, losing $0.20 per share in the second quarter of 2022 despite vastly improved attendance and revenue.
This helps explain why AMC might want to raise additional cash. But how it's going about that process should be a big problem for investors, as the company adds to a list of actions that don't look particularly shareholder-friendly.
The basic logic of investing is that shareholders own the company. They hire a board of directors to oversee the management of the company; the board of directors hires a CEO to handle the day-to-day running of the business. That CEO answers to the board, which answers to shareholders. All in all, the business is supposed to be run for the benefit of its owners -- the people and institutions holding the stock.
Source Fool.com
