FACT CHECK: Did Robinhood Halt AMC Stock Trading On June 2?

Charlese Freeman | Contributor

A post shared on Facebook claims online trading platform Robinhood stopped AMC Entertainment’s trading during a stock increase on June 2.

Verdict: False

The New York Stock Exchange (NYSE), not Robinhood, halted AMC Entertainment’s trading due to the volatility of its stock on June 2.

Fact Check:

AMC Entertainment’s stock closed Wednesday at an all-time high, increasing by 95.2%, according to Reuters. The stock’s sudden increase appeared to stem from Reddit users and AMC Entertainment’s CEO offering shareholders a free large popcorn for signing up for the company’s newsletter, the outlet reported.

A Facebook post claims Robinhood on June 2 stopped the trade of AMC Entertainment’s stock while it was experiencing the increase. (RELATED: Did Robinhood Tweet ‘Buying Some Stocks Might Be Limited’ Due To System Updates?)

Robinhood is not, however, responsible for stopping the trade of AMC Entertainment. The NYSE halted the trading of AMC Entertainment’s stock on June 2 several times for triggering limit up-limit down (LULD) rules, according to the NYSE’s website. A LULD pause “addresses extraordinary market volatility in U.S. equity markets” and is “intended to prevent trades in National Market System (NMS) securities from occurring outside of specified price bands,” according to Nasdaq. AMC Entertainment stock trading was also paused by the NYSE for volatility on June 3, according to the NYSE’s website.

When Robinhood stopped the trading of Gamestop and AMC Entertainment earlier this year, several media outlets reported on it. If Robinhood had restricted trading on AMC Entertainment on June 2, it is likely media outlets would have reported on it, yet none have done so. Additionally, media outlets such as Fox Business, Newsweek and Deadline all attributed the stock’s halt in trading to the NYSE, not Robinhood.

Robinhood on June 2 sent a tweet saying the claim that it was responsible for stopping the trade of AMC Entertainment is “not accurate.”

“Speculation that Robinhood has halted trading in $AMC is not accurate,” the tweet reads. “Earlier today, the NYSE implemented a volatility trading pause of $AMC.”

Charlese Freeman

Contributor

Trending

FACT CHECK: Did Nobel Laureate Dr. Denis Mukwege Say He Resigned From A COVID-19 Task Force Because He Was Ordered To Manipulate Case Numbers?
FACT CHECK: Is This Image The 'First Ever' Photo Of A Sunset On Mars?
FACT CHECK: Does This Photo Show A Real 7-Headed Snake?
FACT CHECK: Is Texas The Only State That Can Fly Its Flag At The Same Height As The American Flag?