Why The9 Limited Stock Plummeted Today
Shares of The9 Limited (NASDAQ: NCTY) plummeted on Wednesday morning after the company announced a massive stock offering. As of 10:15 a.m. EST today, shares were down a whopping 27%.
For clarity, remember that The9 is an international stock. And like most international stocks, common shares don't trade on U.S. exchanges. Rather, the American depositary receipts (ADRs) are what U.S.-based investors typically buy. Every company's structure is different, but in the case of The9, one ADR equals 30 common shares.
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Source Fool.com
