Why Newsmax Stock Is Crashing Today
Shares of Newsmax Media (NYSE: NMAX) are plunging on Friday. The media company's stock lost 18% as of 3:45 p.m. ET and was down as much as 23.6% earlier in the day. The steep decline comes as the S 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) lost 0.2% and 0.6%, respectively.
Newsmax announced today that the Securities and Exchange Commission (SEC) has approved its filing that will allow certain investors to sell their stock, leading to significant dilution.
Newsmax announced that the "SEC has declared effective the Newsmax resale registration statement on Form S-1." This means that the shares held by investors who had taken part in a previous private placement and until now were prohibited from trading their shares on the public market may now do so.
Source Fool.com
