Why AMC Entertainment Is Falling Today
Shares of AMC Entertainment (NYSE: AMC) were falling 4% in midday trading Thursday after the theater operator published a proxy statement reminding investors it wants to further dilute shareholders.
AMC has used the support it's received from the r/WallStreetBets crowd to massively dilute its shareholders by issuing tens of millions of new shares to raise money. While the stock had been on life support due to the pandemic causing states to order its theaters closed for most of last year, the tremendous run-up in its stock's value -- up 2,650% so far in 2021 -- has allowed it to raise billions of dollars.
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Source Fool.com
