Decided to add up all FTDs since AMC’s IPO in 2013 up until the most recent report 5/12/23 and it’s ~283,946,310 shares total
This is on top of the 517 million shares oustanding. I included the 1,824 FTDs that carried over when AMC went private in 2008 and made a new IPO in 2013. The numbers used are from here: https://chartexchange.com/symbol/nyse-amc/failure-to-deliver/
“What Is Failure To Deliver (FTD)?
Failure to deliver (FTD) refers to a situation where one party in a trading contract (whether it’s shares, futures, options, or forward contracts) doesn’t deliver on their obligation. Such failures occur when a buyer (the party with a long position) doesn’t have enough money to take delivery and pay for the transaction at settlement.
A failure can also occur when the seller (the party with a short position) does not own all or any of the underlying assets required at settlement, and so cannot make the delivery.
Source: https://www.investopedia.com/terms/f/failuretodeliver.asp
Now let’s say for the sake of argument not all these are naked shorts and at least 10% were accounts that had insufficient funds to pay for shares purchased, that would still leave about 255,551,679 shares that were potentially created out of thin air. I also don’t know how many times over they could’ve been used as locates for new borrows. You can do the math yourself and make your own assumptions. This is supposed to be bona fide market making right…?
submitted by /u/NeoSabin
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