Plus500's Stock Takes Another Hit on Annual Report Amendment
The London-listed online trading firm crashed last week after forecasting in its 2018 earnings report that revenues for 2019 will be "lower than current market expectations" due to regulatory changes
For daily updates, subscribe to our newsletter by clicking here.Plus500 offers trading in financial derivatives called contracts for differences. Buyers try to correctly predict fluctuations in the prices of stocks, wares, indexes, foreign currency, and exchange-traded notes. The company acts as a third party broker collecting fees and also offers its own contracts for differences, making money when the customer loses.
Monday’s stock crash comes shortly after the hit Plus500’s stock had taken last week, when the company said measures newly adopted by the European Securities and Markets Authority (ESMA) regarding contracts for differences and binary options are "likely to result in 2019 profit being materially lower" than that seen in 2018.Since the publication of its 2018 preliminary results, Plus500's stock fell by around 50%.