AMC Entertainment recently announced that its shareholders will receive a special dividend of one “AMC Preferred Equity Unit” (Ticker: APE) for each share of AMC stock held. The units received via this dividend will be processed and first tradeable on Monday, August 22.
Despite using the name “Preferred” to describe the unit, these are not shares of preferred stock. Rather, as noted in AMC’s filings, each Preferred Equity Unit is technically a depositary share and represents an interest in one one-hundredth (1/100th) of a share of the company’s preferred stock. Therefore, the APE units are not preferred stock themselves, and instead operate largely like common stock. See the quick reference guide linked further below for more details.