Differences between Investing vs Trading
Differences between Investing vs Trading
AMC Entertainment Holdings is the planet’s biggest movie theatre chain. They are based in Kansas, in the US, but also have numerous theatres in Europe and other parts of the planet. The history of this group can be traced back to 1920, when Maurice, Edward, and Barney Dubinsky formed AMC theatres. However, multiple name changes, acquisitions, and takeovers have taken place since then.
They moved into drive-in movie theatres in the 1940s before gradually increasing their portfolio of locations all over the US. In addition, AMC helped to pioneer the multiplex and megaplex concepts, allowing them to greatly increase their revenue by offering movies on several screens at the same time in a single location without needing to hire more staff.
By the 1980s, AMC had moved into the UK market and currently they have a strong presence in Europe and the Middle East, as well as their long-standing presence in the US.
The AMC and GME 2022 robinhood scandal refers to the events surrounding the sudden halting of trading of certain stocks by the Robinhood app. The stocks in question, AMC and GME, were both highly volatile, with AMC seeing a 1400% increase in value and GME seeing a 700% increase. Robinhood halted trading of these stocks, citing concerns about market volatility. This caused an uproar among users of the app, many of whom accused Robinhood of engaging in market manipulation. The scandal escalated when it was revealed that Robinhood had received billions of dollars in payments from hedge funds in exchange for halting trading.
A look back at the historic AMC share price (traded as AMC on the NYSE) shows a high level of volatility, driven by diverse factors such as rising and falling demand for movie theatres. The arrival of on-demand streaming services has put pressure on this industry, although their sales figures suggest that the public is still hugely attracted to blockbuster movies in this setting.
An example of the volatility can be seen in the AMC share activity at the start of 2021. Having secured $917 million in fresh funding to help them face the future, AMC stock was subjected to a short squeeze that led to its price shooting up by 300% before falling again.
Market conditions and potential innovations will be crucial in determining their future share value. The company has announced interesting steps such as accepting Bitcoin and other cryptocurrencies, as well as adding music concerts and sports to its business model for increased diversification.
AMC Entertainment stock typically doesn’t pay dividends to shareholders and has shown a strong tendency for price swings in the past. Therefore, the type of investor who buys AMC shares is likely to be someone looking to gain from the volatility of the stock rather than build up safe and steady profits.
Given the changing face of the entertainment industry and the track record of AMC stock, buying the underlying asset is an option that could lead to your investment fluctuating widely. Those investors who prefer a steadier return may opt to trade in a mutual fund or ETF that includes this company among its elements.
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* The spreads provided are a reflection of the time-weighted average. Though Skilling attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.
The above spreads are applicable under normal trading conditions. Skilling has the right to amend the above spreads according to market conditions as per the 'Terms and Conditions'.
Why Trade [[data.name]]
Make the most of price fluctuations - no matter what direction the price swings and without capital restrictions that come with buying the underlying asset.