Why AMC Stock Is Dropping Today
Shares of theater owner AMC Entertainment (NYSE: AMC) plunged 6% early Monday on news related to its recently created AMC Preferred Equity (NYSE: APE) units. At 11:10 a.m. ET, shares had recovered some of that drop but remained down by 4.9%.
Investors holding out hope for a recovery in AMC's business were originally excited when the company issued the new equity units to existing shareholders as a special dividend. AMC Preferred Equity units (APEs) began trading on the New York Stock Exchange just over a month ago, on Aug. 22. But both the common stock and the preferred units have been declining ever since, down 26% and 33%, respectively. Now AMC is planning to issue even more preferred equity units, and that's not making common shareholders happy.
Source Fool.com
