Emma Asma Cornwall
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Emma Asma Cornwall in Gainers & Losers,

​Under Armour market cap halved, what next?

Under Armour shares plunged 49.35% on Friday  as popular apparel company  reorganized its ownership structure.  

Earlier the company released a statement outlining its desire to issue class C shares as a stock dividend on a one-for-one basis to all existing holders of Under Armour's Class A and B common stock. Adding an additional class of shares has the same effect as a two-for-one stock split where the current number of outstanding shares is doubled in order to allow for the one-for-one conversion process. For stockholders of Class A and B shares, the stock dividend was distributed this past Thursday, April 7th, at the end of the trading day.

The main reason behind the move was for Kevin Plank, Founder and CEO of Under Armour, to protect his ownership control of the company in the face of the growing need for stock issuances covering employee compensation, acquisitions, and other expenses, which could dilute his voting power. Under the previous structure, both class A and B shares held voting rights which pressured current shareholders as the company's incredible growth rate continued to increase the share count, according to Seeking Alpha.

Is everything that bad? May be this deadly cheap stock is worth looking into it? I'll take a look)