AMC is Now Designated by NYSE as a ‘Threshold Security’
Tim Fries, 29 June 2021
The more one zooms into the stock market’s underpinnings, the more surreal it gets. Today, the NYSE has designated AMC as a ‘threshold security’, shining further light onto the situation with AMC shares that fail to deliver.
MOASS Revisited
Yesterday, the Tokenist reported on another tie-in to the great short squeeze saga. Both TD Ameritrade and Schwab brokers announced their increased margin trading requirements to reduce the risk for themselves and for traders who wish to engage in the trading of the two mega-shorted stocks – GME and AMC. As these stocks already drained $12 billion from hedge funds, all market players are fortifying their financial walls. Continue reading “Article: AMC is Now Designated by NYSE as a ‘Threshold Security’”
As trading platforms like Robinhood create a rise in retail investor market participation and spark a renewed interest in shares of companies dubbed “meme stocks” like GameStop (GME), BlackBerry (BB), and AMC (AMC), the world of finance is seeing an intersection with the social media sphere.
Charles Schwab has raised margin requirements for short sellers shorting AMC and GME stock. The broker is adjusting 100% margin requirements for AMC on all long positions, and 200% on short term positions.
There’s something a little weird about short selling. Shorting—or betting that a stock’s price will fall—is a feature of finance that doesn’t have a close analogue in the real-world economy.
The Wall Street establishment and the Reddit, Robinhood-fueled meme stock traders don’t see eye to eye, on just about anything. In fact, rolling eyes at the stock market’s traditional ways is inherent in trades like GameStop and AMC Entertainment.
Staring at a meme stock craze that shows few signs of abating, Wall Street is still wrestling with how to trade it.