Amc stock fails to deliver report is in, and they have once again gone up past many other stocks with much larger market caps. The Sec reported data shows that Amc fails to deliver are once again so high that some would speculate that there is something else going on here.
High amounts of shares failing to deliver is nothing that Amc stock hasn’t seen before. Over the last year there has been numerous times actually where Amc stock had more fails to deliver than most all other stocks across the entire market.
Amc shares failing to deliver hit nearly 190k as of last month alone and the most recent fails to deliver show something around 400k in total which is a large increase even in the short term.
KEY TAKEAWAYS
- Failure to deliver (FTD) refers to not being able to meet one’s trading obligations.
- In the case of buyers, it means not having the cash; in the case of sellers, it means not having the goods.
- The reckoning of these obligations occurs at trade settlement.
- Failure to deliver can occur in derivatives contracts or when selling short naked.
- (source: investopedia)
Although Fails to deliver do happen across the market from time to time and normally don’t raise much questioning, in this case it seems like there could in fact be something bigger going on such as naked short selling.
KEY TAKEAWAYS
- Naked shorting is the now-illegal practice of selling short shares that have not been affirmatively determined to exist.
- Ordinarily, traders must first borrow a stock or determine that it can be borrowed before they sell it short.
- Due to various loopholes in the rules, and discrepancies between paper and electronic trading systems, naked shorting continues to happen.
- Although controversial, some believe naked shorting plays an important and positive market role in price discovery.
- (source: investopedia)
Regardless of what is truly going on currently, there is hope that justice will be served soon. The Justice Department Targets ‘Spoofing’ and ‘Scalping’ in Short Seller Investigation which is ongoing.