Prices of shares in for-profit colleges tumbled today in response to President Barack Obama’s reelection last night.
According to the Associated Press:
Shares of for-profit education companies tumbled Wednesday after President Barack Obama was re-elected. His administration has tightened federal regulations over their schools.
Industry observers had said that a win by Mitt Romney would have likely led to new leadership at the Department of Education and possibly policy changes.
Apollo Group Inc. (which owns the University of Phoenix) shares fell $1.52, or 7 percent. The Washington Post Co., owner of Kaplan University, declined $5.40, or 1.6 percent. DeVry Inc. fell 6 percent, or $1.56. Corinthian Colleges Inc. shares declined by 7percent, 19 cents.
It’s worth pointing out here that U.S. stocks in general fell sharply today; the S&P 500 Index dropped 2 percent.