APE STOCK & SEC RULE 203(b)(3) 13 DAYS!

AMC STOCK’s Preferred dividend unit ‘APE’ ticker $APE which now has been trading on the open market for a few weeks is officially on the Threshold Securities list.

What do this mean for $APE stock?

When a stock is added to this list it can mean numerous things. As defined on investopedia “A threshold list is a list of securities whose transactions failed to settle for five consecutive settlement days. Threshold lists are published by various exchanges by SEC regulations. Settlement failures may be indicative of improper naked short selling. Administrative errors may also cause settlement failures”

Source: NYSE

RULE 203(b)(3)

Rule 203(b)(3) of Regulation SHO requires that participants of a registered clearing agency must immediately purchase shares to close out fails to deliver in “threshold securities” if the fails to deliver persist for 13 consecutive settlement days. Threshold securities, as defined by Rule 203(c)(6), are generally equity securities with large and persistent fails to deliver.

(Source SEC.gov)

There is speculation that this rule can and will be applied towards APE. Like this rule says there could be swift and major action taken place if the fails to deliver persist for 13 consecutive settlement days.


AMC Stock’s Fails to Deliver numbers have once again skyrocketed. Failure to deliver as explained on Wikipedia: In finance, a failure to deliver is the inability of a party to deliver a tradable asset, or meet a contractual obligation. A typical example is the failure to deliver shares as part of a short transaction.

Things to note with failure to delivers (FTD) *Source Investopedia*

  1. Failure to deliver (FTD) refers to not being able to meet one’s trading obligations.
  2. In the case of buyers, it means not having the cash; in the case of sellers, it means not having the goods.
  3. The reckoning of these obligations occurs at trade settlement.
  4. Failure to deliver can occur in derivatives contracts or when selling short naked.
Source: Stocksera
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