Bank of America denied it has any plans to issue stock in a secondary offering, countering an afternoon market rumor that pushed its shares into negative territory.
Nell Redmond
A Bank of America branch.
After the denial, BofA shares rebounded almost 2 percent in after-hours trading.
“Contrary to market rumors, Bank of America has no intention of issuing additional equity in a secondary offering,” according to the bank’s spokesperson.
Shares of BofA suddenly dropped into negative territoryas the secondary offering rumors swirled in late afternoon trading. Earlier in the session, the stock had risen above the $10 a share mark and doubled its most recent multi-year low of $4.92 in mid-December. BofA has spiked almost 20 percent in the last five trading sessions.
In terms of volume, 658.8 million shares of BofA traded hands on Monday, the highest level since last August.
Last week, the bank was named as one of the 15 financial institutions that passed the Federal Reserve’s annual stress test, along with its peers JPMorgan , Wells Fargo ,Morgan Stanley and others. However, unlike other banks, the financial giant did not announce share buybacks or dividend increases.
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