Why AbbVie (ABBV) Stock Is Down Today

NEW YORK (TheStreet) -- Shares of AbbVie  (ABBV) fell 1.92% to $57.58 in morning trading Tuesday after the U.S. Treasury Department and the IRS announced a plan to decrease inversion tax benefits.

The plan aims to discourage U.S. companies from moving their headquarters to other countries through mergers with foreign companies in order to take advantage of the benefits and reduce their U.S. taxes. The government structured the revisions to five sections of the tax code to make it more difficult for companies to make the tax inversion deals and to reduce the financial benefits should they do so.

"These first, targeted steps make substantial progress in constraining the creative techniques used to avoid U.S. taxes, both in terms of meaningfully reducing the economic benefits of inversions after the fact, and when possible, stopping them altogether," said Treasury Secretary Jacob J. Lew in a statement. "While comprehensive business tax reform that includes specific anti-inversion provisions is the best way to address the recent surge of inversions, we cannot wait to address this problem."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Shares of Shire  (SHPG) , which AbbVie agreed to buy for $54 billion in July in a tax inversion deal, also fell 2.06% to $251.01 on Tuesday morning.

 

ABBV Chart ABBV data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you liked this article you might like

The Hottest Investing Plays in the Booming Weed Industry for 2018

The Hottest Investing Plays in the Booming Weed Industry for 2018

Jim Cramer: These 4 Stocks Seem Attractive Right Here

Jim Cramer: These 4 Stocks Seem Attractive Right Here

AbbVie Appears Ready to Start a New Advance at Any Time

AbbVie Appears Ready to Start a New Advance at Any Time

Watch These Biotechs and the FDA Calendar

Watch These Biotechs and the FDA Calendar

Jim Cramer: These 4 Stocks Seem Attractive Right Here

Jim Cramer: These 4 Stocks Seem Attractive Right Here