APE Stock Halted, AMC Plummets In Volatile Open For New Dividend

Updated at 10:48am EST

AMC Entertainment’s (AMC) new preferred dividend, which bears the ticker symbol APE, was discontinued minutes after their debut on the New York Stock Exchange Monday.

The new stock, which AMC has called “preferred stock units” that are “designed to have the same economic value and voting rights as common stock,” opened at $6.95 each before shutting down at $9.49 during subsequent trading.

In theory, if the APE units trade as intended, they and the standalone AMC stock should behave somewhat like a “two-for-one” stock, as they give each common shareholder the same equity stake in the parent company. However, their conversion potential, which AMC’s shareholders must vote on following a board recommendation, could dilute the outstanding value of AMC’s shares, adding downward pressure in early trading Monday.

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