Failure to deliver occurs when a short seller doesn’t actually have the asset that they’re selling short. There have been as many as 43 million FTDs in APE in a single day since it started trading. Nobody’s quite sure why there have been so many FTDs associated with APE and AMC stock. Many shareholders suspect certain companies have been the target of predatory short-selling practices, such as naked shorting, which have hurt the performance of their stocks. AMC CEO Adam Aron said one of the reasons AMC Preferred Equities were created was to shed light on short sellers’ use of synthetic shares.Read Long Article
