APE dividend: is it an AMC stock split?

AMC Entertainment has declared a special preferred stock dividend to reward investors – but the plan is essentially going to function like a stock split. So, what’s the difference? Find out everything you need to know about the AMC stock issue.

Trader 3

AMC Entertainment has declared a special preferred stock dividend to reward investors – but the plan is essentially going to function like a stock split. So, what’s the difference? Find out everything you need to know about the AMC stock issue.


Is AMC holding a stock split?

AMC is technically not holding a stock split, but it is issuing shareholders with a special dividend in the form of preferred stock, which will result in much the same outcome. 

When companies split a stock, they’re essentially increasing the number of shares available by issuing new ones to existing shareholders. This AMC special dividend will work slightly differently, as shareholders won’t receive additional shares of AMC, but will get one share of a new preferred stock that will trade as ‘APE’.

Although some have said this is essentially creating a 2-for-1 stock split – as for every share of AMC held, an investor will receive a share of APE – it depends on these preferred shares being converted into common shares at a later date. AMC shareholders will have to hold a vote to allow this to happen.  It’s worth noting that last year, AMC shareholders did not support a request to increase the number of authorised common shares.

 So, if you have five shares of AMC at the close of play on August 19, you’d still have your holding plus five shares of the new APE preferred equity units. And at some point in the future, you might get the chance to convert your 5 APE shares into AMC common shares.

The new shares will list on the New York Stock Exchange under the ticker ‘APE’ – as a nod to the investors who turned the company into a meme stock in 2021, who call themselves ‘apes’ or the ‘ape nation’. These shares will have the same voting rights as the existing common shares.

Learn about the different types of shares.

Why is AMC splitting its shares?

AMC is splitting its shares as a means of paying down outstanding debt, making it more attractive to new investment. AMC currently has $5.5 billion in outstanding debt, and the company is authorised to issue up to 4.5 billion preferred shares of APE in the future to raise cash which could pay this off.


Who qualifies for AMC’s special dividend?

The special dividend will go to shareholders on record as of August 15 and will be paid at the close of business on August 19.

The ex-dividend date is set on August 22 – so if you sell your shares before then, the person you sell them to will be entitled to the new APE shares.


How to trade AMC Entertainment with FOREX.com

You can speculate on AMC Entertainment shares with FOREX.com in just four easy steps:

  1. Open a FOREX.com account, or log in if you’re already a customer
  2. Search for ‘AMC’ in our award-winning platform
  3. Choose your position and size, and your stop and limit levels
  4. Place the trade

Or you can try trading AMC shares risk free by signing up for our demo trading account.

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account