Image source: Bloomberg

AMC STOCK CEO Adam Aron took to twitter saying “Many of you, and we, are aware that AMC Entertainment has been on “The Threshold List” for 3+ weeks, indicating a number of FTD’s. Some of you may be pleased to learn that we have contacted both FINRA and the NYSE asking that they both look closely at the trading of our stock.”

Many factors can lead stocks to appear on the threshold list, but most often it happens when there is a lot of trading activity in the stock, particularly a lot of short selling. A stock that appears on the threshold list has had a significant portion of its shares borrowed or sold short by investors who anticipate a decline in the stock’s value.

The threshold list is maintained by the exchanges and is used to identify stocks where there is a high level of short selling activity, specifically when the number of shares sold short exceeds a certain percentage of the stock’s float. The “float” refers to the number of shares that are available for trading to the public, which can be different from the total number of shares outstanding.

When a stock lands on the threshold list, it triggers certain requirements and restrictions for short sellers. Specifically, if a stock remains on the threshold list for a certain number of days, short sellers are required to locate and borrow shares before they can sell them short. This is intended to prevent short sellers from artificially driving down the stock’s price by selling shares that they don’t actually own.

Will it be too late for the higher powers to do anything about this for AMC Stock and the apes, or did CEO Adam Aron come to the rescue just in time?


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