Why AMC Entertainment Stock Is Down on Wednesday
Shares of AMC Entertainment (NYSE: AMC) have fallen by as much as 7% on Wednesday after the beleaguered theater chain provided investors with an update on its plans to raise capital. AMC stock remains popular among retail traders on Reddit's WallStreetBets subreddit, and shares remain elevated from where they started the year.
AMC was narrowly able to avoid bankruptcy last year as its business was decimated by the COVID-19 pandemic, in part by capitalizing on the surge in retail investor demand. Not only has AMC raised capital by selling shares into the rally, institutional creditors such as Silver Lake converted bonds to stock that it subsequently sold, extinguishing that debt obligation while pocketing handsome profits.
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Source Fool.com
