AMC Entertainment’s (AMC) new preferred dividend, which trades under the ticker name APE, was halted and fell more than 20% from its opening price minutes after making its debut on the New York Stock Exchange on Monday. The new shares, which AMC has referred to as “preferred equity units” and are “intended to have the same economic worth and voting rights as a share of common stock,” started trading at $6.95 a share until being stopped at $9.49 later in the day. 149 million AMC shares and 108 million APEs traded Monday on the NYSE. Exchange “halts” trading due to volatility, defined as a +/- 5% price change within a 5 minute period. If so, trading is stopped for a 5-minute pause. On Monday, AMC was halted 3 times, APE halted 10 times! — Adam Aron (@CEOAdam) August 22, 2022 If they trade as intended, the stand-alone AMC shares and the APE units should, in principle, behave similarly to a “two-for-one” stock split because they each grant common shareholders the same equity interest in the parent business. However, the possibility of their conversion, which is up for a vote by AMC shareholders on the board’s suggestion, might lower the market value of AMC shares, adding to the downward pressure in early Monday trade. AMC Shares Falls In late-afternoon trading on Monday, AMC shares fell 41.5%, changing hands for $10.54 each. APE stock last traded 21% down at $5.50 per share. Compared to the stand-alone AMC share closing price of $...
