A matter of days ago, AMC Stock was once again added to the threshold securities list. If you are reading this and are a shareholder of AMC Stock, you might want to understand what this means and could mean for your holding.
WHY WAS AMC STOCK ADDED TO THE THRESHOLD SECURITIES LIST?
AMC Entertainment has been added to the list of “threshold securities” as a result of regulations pertaining to short sales in the stock or short selling.
Stocks on the threshold securities list are those for which additional restrictions on short selling apply. The regulation aims to lessen market manipulation’s potential and ensure the stability of financial markets.
Stocks that fit specific requirements, including having a lot of short interest, might be added to the list.
AMC was likely added to the threshold securities list as a result of the stock’s high amount of short interest and recent erratic price swings. AMC was even halted again recently.
It’s important to remember, though, that being added to the list doesn’t always imply that the stock is going through any specific financial problems or unusual market conditions. Instead, it is only a regulation meant to safeguard the stability of the financial markets.