APE STOCK STRUGGLES
AMC STOCK’s Preferred dividend unit ‘APE’ which now has been trading on the open market for a few weeks is officially on the Threshold Securities list!
Since the inception of the $APE equity unit there have been many concerns among retail investors across the entire AMC community (Which is famously over 4 million retail investors strong; Adam Aron said during a previous earnings call.
Some of this tension when it comes to $APE is because of the fear of Dilution. Dilution in a stock in theory makes the shareholder own less equity than prior to diluting the asset. But Adam Aron said this about Dilution a few weeks back.
THRESHOLD SECURITIES
Members of the AMC and APE stock community discovered that sure enough $APE had been added to the Threshold security list on the NYSE website.
A Threshold list as defined on Investopedia is: a list of securities whose transactions failed to clear for five consecutive settlement days at a registered clearing agency. Threshold lists are published in accordance with regulations set by the SEC. Regulators review this information as part of their efforts to detect Market manipulation.
The fact that $APE has already been added to this list, seems to fall directly in line with many of the AMC and APE investor’s narrative on nefarious and possibly illegal activities going on when it comes to these names.
Now that APE stock has been added to this list, it proves that the stock is on the radar of the regulators, and they are taking a close look at everything that goes on with this name for at least a set period of time. In the meantime, Shorts could want to close their positions in order to avoid scrutiny, but only time will tell.
AMC and APE have been heavily shorted for as long as retail investors can remember at this point. Only history will prove if all the shorting going on has been completely legal or not.