DK - Why CVR Energy Stock Dropped 20% at the Open Today
Shares of CVR Energy (NYSE: CVI) fell a quick 20% or so at the open of trading on Friday compared to the closing price on Thursday. That said, the stock of the diversified holding company, with interests in energy refining and fertilizer businesses, may actually be shown as slightly increasing in value by some quote services. The problem is the timing and impact of a one-time corporate action.
Automated systems like stock quotes handle normal events very well, but when something that's a bit outside the box comes up, the results that end users see can get confusing. CVR Energy's stock price is a real-world example of this. In May, CVR announced plans to make a special distribution of cash and stock related to its investment in Delek US Holdings (NYSE: DK) . There's really no way to plan ahead for something like this as it is a unique, company-specific event.
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Why CVR Energy Stock Dropped 20% at the Open Today