Why Manchester United Stock Is Falling Today
Shares of soccer club Manchester United (NYSE: MANU) are falling today, down by 8.9% as of 9:55 a.m. EST. The slump comes in the wake of news that one of the publicly traded sports team's investors, the "Avram Glazer Irrevocable Exempt Trust," wants to sell 5 million of the shares it owns in a secondary offering.
So why is that "bad news"? A couple of reasons suggest themselves.
First and foremost, 5 million shares is more than 3% of all the shares Manchester United currently has outstanding. The sale of a big slug of shares like this is likely to depress the stock price as offers to sell Manchester United shares outweigh offers to buy, driving the price down.
Source Fool.com
