American Realty Capital Properties' stock plunged 30%, and was the market's most-actively traded stock through Wednesday afternoon trade, after the real estate investment trust said early Wednesday that its financial filings covering 2013 and the first two quarters of 2014 should not be relied upon. The stock dropped as much as 37% to an all-time low of $7.85 in intraday trading before paring some losses. Volume was 172.3 million shares, which was more than 13 times the one-day average. "The accounting issues are unacceptable and we are taking the personnel and other actions necessary to ensure that this does not happen again," said Chief Executive David Kay. The company named Michael Sodo as its chief financial officer, replacing Brian Block, and Gavin Brandon was named to replace Lisa McAlister as chief accounting officer. American Realty added it didn't expect the accounting matters to affect the sale of its Cole Capital business to RCS Capital Corp. . Still, RCS's stock tumbled 17%.
Copyright © 2014 MarketWatch, Inc.
Continue Reading Below