TD Ameritrade limits trading on AMC Entertainment

FILE PHOTO: An AMC theatre is pictured in New York
FILE PHOTO: An AMC theatre is pictured amid the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., January 27, 2021. REUTERS/Carlo Allegri

June 4, 2021

(Reuters) – TD Ameritrade put in place trading limitations on AMC Entertainment Holdings’ shares, the retail brokerage’s website showed on Friday.

Trading in the stock will be limited to clients with own capital on hand and not borrowed funds, TD Ameritrade said, adding there might be some additional requirements on trading options that expire on June 11.

The news comes as shares of AMC shuffled between gains and losses on Friday morning after a blistering rally that left the company’s stock up around 90% for the week.

AMC has been at the center of a second wave of buying by retail investors who have hyped the stock in forums such as Reddit’s WallStreetBets, reinvigorating the “meme stock” phenomenon that sent shares of video game retailer GameStop up 1,600% in January.

(Reporting by Eva Mathews in Bengaluru; Editing by Shinjini Ganguli)