Investors are bulking up on AMC stock prior to the new stock dividend.
The big volume has caused AMC Entertainment stock to rise 18.86% on Friday and more than 15% on Monday.
A new $APE stock was announced during Thursday’s Q2 earnings call, part of a dividend AMC Entertainment will be distributing to shareholders later this month.
This ‘AMC Preferred Equity’, or APE, will be available to all AMC shareholders by the 19th of August.
Investors should see the new ticker on their broker accounts the following trading day.
But why is this new $APE stock a big deal?
That’s what we’re here to discuss.
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AMC’s volume surges
AMC’s trading volume has more than doubled surpassing 100 million both on Friday and Monday.
This strong demand for the stock has also caused the stock to trade significantly higher.
AMC closed at $22.18 on Friday and traded around $25.50 per share majority of Monday’s trading day, even reaching $26 per share.
The stock is up more than +56% on the 5-day trading chart and more than +61% on the monthly.
The high volume in the recent days suggests retail investors are going in the offense to make the most out of this upcoming APE stock dividend.
How many APE will AMC shareholders receive?
AMC shareholders will receive one APE share for every AMC share they hold.
(Ex. 1,000 share of AMC = 1,000 additional shares of APE stock)
Shareholders will be able to trade APE stock based on supply and demand meaning the security will indeed hold value.
The value shareholders will be receiving in the next few weeks is unlike anything else in the market.
APE stock IPO
Although APE stock is merely a dividend from an already publicly traded company (AMC Entertainment), the structure could almost be seen as an IPO due to its introduction to the market.
This means that like an IPO, we could expect APE stock to surge in price during its first few days to weeks in the market.
The sheer volume on its own could create a massive surge similar to what we witnessed with HKD stock, especially if institutions buy in heavily.
Perhaps it’s not the exact magnitude we saw with HKD stock, but something similar with enough buying power and demand for the stock.
Here, shareholders will be able to maximize profits from APE stock and AMC stock, if AMC has not already squeezed short sellers.
There will be money to be made for early adopters.
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