People walk outside a movie theater.
Noam Galai is a photographer.
AMC Entertainment fell as much as 20% on Friday due to insider sales.
AMC's CFO sold the last of his shares on December 7, while the CEO sold his stock.
Retail investors had an idea to issue a NFT dividend, but it was rejected by the man.
The movie theater chain's shares fell as much as 20% on Friday after SEC filings revealed that the CEO and CFO sold their shares.
On December 7, the CEO and the CFO of the company sold their AMC shares. According to data from Nasdaq, company insiders at AMC sold stock 24 times over the past three months, while only one instance of open market buys was reported.
The CEO rejected the idea of issuing an NFT dividend, which was popular with retail investors in recent weeks, as well as the insider sales, which hurt the stock's value.
NFTs are a great idea. "But not a 1 per share security token NFT dividend, as repeatedly described on the internet," he said.
The idea of AMC issuing a NFT dividend for every share of AMC has been circulating among the retail shareholder base in recent weeks, with the hope of sparking another short-squeeze similar to the one that occurred in early June.
It is likely illegal and exposes AMC to huge litigation risk. We can't do it. "Don't be fooled by concepts that sound easy and good to be true."
In recent months, the movie theater chain has accepted meme-inspired cryptocurrencies like dogecoin, as well as issuing 86,000 free Spider-Man NFTs to early ticket buyers of the upcoming Spider-Man: No Way Home movie.
The company faces a difficult task in reversing the secular decline in the movie theater industry as it faces the challenge of reversing the COVID-19 Pandemic.
The $16 billion movie theater operator's shares are down from their record high of $72.62 in June, but are still up more than 1,200% year-to-date.
Markets Insider.
Business Insider has an original article.
