Why Petroleo Brasileiro Stock Plummeted 22% at the Open Today
Shares of Petroleo Brasileiro (NYSE: PBR) fell a shocking 22% as trading got under way on Wall Street today. Although not exactly a household name in the United States, Brazillian Petroleo Brasileiro (often called Petrobras for short) is one of the largest energy companies in South America and sports an over $50 billion market cap (taking into account the roughly 20% nosedive). It is a major player in the global energy sector, often partnering with names you likely do know, like ExxonMobil and Chevron.
One of the biggest differences between names like Exxon and Chevron and Petroleo Brasileiro, however, is who controls them. Exxon and Chevron are private entities owned by shareholders. The Brazilian government owns nearly 37% of Petroleo Brasileiro's stock and 50% of the company's voting rights. Put simply, it does what the government tells it to. And, over the weekend, the president of Brazil decided to fire its CEO.
Image source: Getty Images.
Source Fool.com
