Why AMC Preferred Stock Was Popping Today
In its second day of trading, AMC Preferred Stock (NYSE:APE) popped as investors embraced the new dual class structure and seemed to migrate from the common stock to the preferred alternative.
As of 12:28 p.m. ET, APE stock was up 18.7% to $7.12, while shares of AMC Entertainment (NYSE: AMC) were down 5.1% to $9.93.
Yesterday, AMC Entertainment gave all shareholders an APE share for each share of AMC they own. Effectively, the company gave a stock dividend, but in the form of preferred stock, creating a new dual-class structure rather than just issuing more common stock.
Source Fool.com