It also equivalates to 24.99% of the shares outstanding.
Below I break down their proof of naked shorting in AMC.
Welcome to Franknez.com – proof of naked shorting has surfaced in a data driven article by a community member. I will break down pieces of the long article to simply its content.
Let’s get started!
In this excel file you’ll find that AMC has the largest percentage of shares outstanding compared to a variety of ticker symbols held by Apex.
The second company with the highest shares outstanding is CAR stock at 16%, which just had a short squeeze.
Proof of Naked Shorting in AMC
The lowest point of this graph reflects the 24.99% shares outstanding on Apex (December).
You can imagine how much higher this percentage was back in January and May of 2021 (peaks).
So, although we see an incredible amount of share dilution last year, the percentage is still rather high going into 2022.
LTF argues that the percentage should be around 1% or less considering Apex is not even one of the top clearing firms and touches topic on “market-maker alliance”.
While one might argue that we would need more information from other market makers to validate the existence of naked shares, this is certainly a good start.
The argument isn’t about how many naked shares are out there, but whether they exist or not.
Let’s hear what Charles Gradante has to say.
Also, be sure to watch the topic discussion on YouTube at the end of the article.
Charles Gradante on Naked Shorting
In this incredible event panel, hedge fund industry expert Charles Gradante provides us with insight on what’s truly happening from Wall Street’s perspective that mainstream media isn’t talking about.
While mainstream media and regulators look at retail investors, Charles Gradante explains market makers favor shorting stock, creating a massive conflict of interest given the incredible amount of power they have over the markets.
Charles Gradante says regulators don’t know how to handle “it” when referring to the market manipulation surrounding “meme stocks”.
“When shorting got out of hand, the market makers created synthetic shorts”
Charles provides retail investors with an immense amount of value in this short video.
He walks us through the taking away of the buy button in order to benefit market makers and hedge funds who went short on AMC and GameStop.
Ladies and gentlemen, we now have proof of naked shares in the market.
Retail investors must now look onto regulators to ensure every single naked share out there is bought back and reflected accurately on the lit market.
The biggest transfer of wealth will require individuals to tackle their rights for it.
Once again, the ape community was right.
What to expect moving forward
AMC stock continues to be bought and held by retail investors across the world in attempts to squeeze big shorts from their positions and create real change in the markets.
The play has become more than just a trade, it’s become a movement.
Persistence and patience are what will create this massive transfer of wealth for anyone holding these heavily and overleveraged stocks.
Regulators will be forced to find solutions with integrity or face the consequences from the new world.
Subscribe to the blog for more content and updates.
What’s more alarming is that these family offices aren’t regulated nor registered with the SEC (Securities Exchange Commission), allowing financial institutions to use this network of unregulated trading to their advantage.
In this article we’re going to dive deep into the seriousness of this inequality in the markets.
Welcome to Franknez.com – the blog that protects retail investors from injustices in the markets. Today we’re discussing a loophole in the market that has been overlooked.
Let’s get started!
The inception of Archegos family office
A well-known ‘family office’ you might have heard of is Archegos Capital, founded by Bill Hwang.
Archegos family office had $120 billion total exposure according to Credit Suisse Report, causing $10 billion in trading losses to the world’s largest banks.
Two of which included Credit Suisse and Morgan Stanley.
Bill Hwang was mentored by hedge fund expert Julian Robertson from Tiger Asia Management and Tiger Asia Partners, a hedge fund that was shut down by the U.S in 2012 for insider trading and manipulating Chinese stocks.
After getting banned from the investment advisory industry and a $44 million settlement with the SEC, Bill Hwang set up his family office, Archegos Capital.
Already with a history in crime, Bill Hwang’s family office was able to get away with several billions of dollars in stock positions due to the lack of regulatory measures.
The Archegos incident is currently known as one of the largest public margin calls in family offices, for now that is.
This shadow industry manages twice more assets than hedge funds registered with the SEC.
Family offices managing trillions in assets
Family offices are an unregulated corner of the financial marketplace with an estimated $6 to $7 trillion in assets under management (compared to $3.4 trillion in global hedge funds), via. Inequality.
Archegos revealed that family offices can create systemic risk due to their size, lack of regulation, and growing interest in ‘speculative investments’.
These growing interests in speculative investments may include the shorting of so called ‘meme stocks’ such as AMC and GameStop.
Hedge funds have been overleveraging their short positions in these stocks speculating the companies would go bankrupt shortly after the pandemic.
However, retail investors buying and holding the stock have caused hedge funds betting against these companies to lose billions of dollars.
To refrain from causing their clients further turmoil, we’ve seen an incredible amount of shorting happen in these stocks.
Anomalies in the stocks derive from either naked shorting, a network of unregulated trading, or both.
Hedge funds have used an array of loopholes to suppress the stock price of both AMC and GameStop to minimize consequential losses.
And the retail community is making a lot of noise.
Why aren’t these family offices regulated?
Those in favor of family offices believe light oversight is justified because these offices only serve private families.
Because they are not serving multiple clients, they believe these offices should not be subject to scrutiny.
Should these businesses be regulated and registered with the SEC?
I’d love to know your thoughts, leave a comment below.
The good news is that we have a New York Congresswoman by the name of Alexandria Ocasio-Cortez from the House Financial Committee, introducing a bill that would fight to regulate these family offices.
As more hedge funds close, and others continue to bleed their customers, retail investors suspect they will do everything in their power to deceive retail from squeezing them from their short positions.
An interesting narrative, but a very likely one just as much.
What other glitches have you seen in AMC stock?
Out of the several glitches that have occurred, what other glitches do you recall seeing in AMC Entertainment stock?
Wall Street Journal just published a ridiculous piece on the AMC community.
They refer to the community as a mob and disrespect AMC’s CEO Adam Aron by saying apes made the CEO “play by their rules.”
This discredits the CEO and portrays the community as an entirely different culture.
Come to find out, Ken Griffin actually owns Wall Street Journal.
Let’s dive right into it.
Welcome to Franknez.com – the blog that fights FUD media. When the community is getting attacked you know we’re doing something right.
Let’s get started!
Now, we can’t be too harsh on the two writers who published this article.
Afterall, they’re just doing their job, right?
Wall Street Journal Parent Company
News Corp is Wall Street Journal’s parent company.
Not only do they have ownership of the Wall Street Journal, but they also own other DOW Jones assets such as the Dow Jones Newswire.
Other media brands by the DOW Jones include Barrons and MarketWatch, media companies who have been attacking AMC Entertainment all year.
All these finance media platforms are tied and owned by News Corp.
So, where does Ken Griffin come in?
Ken Griffin Owns Almost 1.4 Million Shares of News Corp.
CEO of Citadel Securities, Ken Griffin owns News Corp, the company that has ownership over Wall Street Journal, Barrons, MarketWatch, DOW Jones, and other media outlets spewing ill words of AMC Entertainment and its community.
SEC commissioners have released a statement on the SEC’s website regarding Gary Gensler’s Agenda.
Commissioners Hester Pierce and Elad Roisman are disappointed with Gary’s proposals, noting it fails to include proper investor protection.
The retail community’s concerns have fallen upon deaf ears when attempting to reach Gary Gensler.
The SEC’s Chairman has failed to establish a relationship with retail investors and protect them against market injustices.
Is it time to replace the SEC’s Chairman due to negligence of retails rights?
Here’s what commissioners at the SEC are saying.
Welcome to Franknez.com – while Gary Gensler had a real opportunity to win retail, he chose not to take matters seriously. Now he’s under intense scrutiny.
Let’s get started!
No Sign of a Fair Market on Gensler’s Agenda
“It fails to include any items intended to facilitate capital formation and misses opportunities to foster fair, orderly, and efficient markets and further investor protection”, says the statement.
Titled, “Falling Further Back“, the commissioners mention Gensler’s agenda plans to redo recently completed rules, and add new regulatory obligations, and constrain investor choice.
This sounds like Gary Gensler is anti-retail investor.
To constrain investor choice is to force a particular course of action.
Recent rules made by the SEC protect retail investors in some form against hedge funds, so why does Gary Gensler want to alter these existing and completed rules?
To impose new regulatory obligations on retail investors sounds rather restricting if you ask me.
Another issue these commissioners encountered in Gensler’s Agenda is the neglection of helping companies raise capital by lowering their thresholds.
Higher thresholds provide a plethora of opportunity to employees, businesses, and small investors.
Abandonment of OTC Trading Regulations
The commissioners are disappointed that the agency is no longer considering the approval of regulating the quality of OTC transactions.
OTC, or over the counter markets is where trading occurs outside a centralized exchange such as the NYSE.
OTC trading provides hedge funds with a loophole to commit fraud since there is less regulation and wider bid-ask spreads to manipulate the market.
Keep in mind commissioners over at the SEC are disappointed with these choices.
It is not common for colleagues to speak out against one another.
But their hands are tied behind their back.
It’s going to take the community to raise awareness surrounding these alarming concerns that allow financial institutions to manipulate the market.
Low CAT Data Security Leaves Investors’ Data Vulnerable
Cyber security is massively important in today’s world and commissioners over at the SEC say Gensler’s agenda fails to prioritize action on data security.
The CAT system, also known as consolidated audit trail, is the current computer system used to record orders, quotes, and trades and identifies the brokers dealing them.
They fear that slowing down the protections around the CAT system leaves investors’ data vulnerable.
Measures were supposed to have taken place last spring but have now been put off.
The end of the statement reads, “We urge the Commission to apply our scarce resources toward better uses than undermining recent precedent and depriving the markets and investors of these rules’ benefits.”
If the SEC is not properly funded by our government to take appropriate measures in the market, then this too causes systemic risk.
There’s no question the SEC Chairman must be replaced but that is only my opinion.
Leave Your Thoughts Below
Why do you think Gensler’s agenda is aimed towards regulating retail investors?
Citadel has sued the SEC on this matter, we have yet to receive a public update on the case.
AMC and GameStop have had an incredible amount of FTDs, or failure-to-delivers.
These are orders that have not been executed in options, and are usually a result of a ‘short party’ not owning or not having all of the underlying asset.
This has led retail investors to the educated assessment that synthetic shares are floating in the market; shares known as naked shares used to short a stock.
According to Investopedia, “Despite being made illegal after the 2008–09 financial crisis, naked shorting continues to happen because of loopholes in rules and discrepancies between paper and electronic trading systems.”
BREAKING: The DoJ (U.S. Department of Justice) has launched a criminal probe on hedge funds short selling while breaking the law.
There are massive concerns hedge funds have been profiting from short selling using illegal means.
You don’t say.
This is what the ape community has been making noise about all year.
Ladies and gentlemen, things are about to get very interesting.
Welcome to Franknez.com – today’s market news is a direct result of the ape community making noise for a fair market. The U.S. Department of Justice has launched an expansive investigation on hedge funds.
Let’s get started!
Department of Justice Looks into Hedge Funds
According to Bloomberg, the probe is being run by the department’s fraud section with federal prosecutors in Los Angeles.
Community, can you imagine how these short sellers must be feeling right now.
Their worst nightmares just came to fruition, and it’s only the beginning.
This expansive probe will be digging into how hedge funds tap into research and setup their bets against retail investors.
Furthermore, authorities are piecing together relationships between hedge funds and researchers, and hunting for signs of manipulation that cause stocks to significantly drop though engineered means and inside trading.
“Short And Distort” Campaigns
The SEC and DoJ are said to have gone after hedge funds for running “short and distort” campaigns.
These campaigns set up bearish bets and release misleading or inaccurate information about a company to drive the price down to profit from the play.
This sounds just like what The Fool, InvestorPlace, MarketWatch, YahooFinance, and Benzinga have been doing all year.
These mainstream financial platforms desperately attempted to divert the public from buying AMC stock by publishing false narratives about the stock, community, and company.
My publications all year were an effort to fight against FUD media and provide the community and public with honest news.
Now, these predatorial tactics are finally being investigated.
Will The Feds Step Up and Enforce the Rules?
The Feds have released a few hedge fund names they are looking into.
Anson Funds and Marcus Aurelius Value are among more than a dozen firms that are being investigated.
Citadel’s name has yet to come up in any of these market news outlets.
However, the entire list hasn’t been fully disclosed yet, though they seem to specifically be looking at Citron Research.
My hopes are that smaller hedge funds aren’t being used as scapegoats for the biggest market maker and hedge fund in the industry.