Disney shares fell more than 5% after Disney CEO Bob Iger said his company would move ahead with its plan to sell Disney stock and options trading in the company’s stock and in the futures markets.
The stock closed down 0.7% to $79.23.
The options trading platform for Disney stock was halted Tuesday after an announcement that the company would sell the company and sell its option trading assets.
Iger also said Disney will use its option selling power to help Disney’s business grow.
Disney stock dropped nearly 1% after the announcement.
I said in the past year that we would move forward and be aggressive in the market, Iger added.
Disney shares closed down 5.9% to close at $791.05.
Shares in other companies that have already sold options to stockholders have gained as well.
For example, Intel, which owns a majority of the chips used in computer chips, was trading up 1.4% after it announced a plan to use its options trading power to buy shares of Disney stock.
Dow Jones, which manages the Dow Jones Industrial Average, was up 0.4%.
Intel shares were up 1%.
Disney shares were down 1%.
Iger has been under pressure from Wall Street to change his strategy.
He announced last month that he would cut his pay package and trim expenses, but he said his stock-and-option strategy would work for the company.
The Disney stock option program, which was supposed to end in 2020, was supposed, at least temporarily, to help the company get out of the “fiscal cliff.”
Disney has also been dealing with the fallout from the government’s announcement last month on the $1.2 trillion tax bill that it would pay.
In the wake of the announcement, Disney’s stock dropped 5% to its lowest level in more than two years.
Disney has already paid $6 billion in federal taxes since 2009, according to data from the U.S. Treasury Department.
The company has about $17 billion in cash on hand, according a filing with the Securities and Exchange Commission.
Disney, which has about 3.3 million employees, has about 7.2 million stockholders.