© Reuters. Interactive Brokers founder: AMC Cinemas (AMC.US) and other “retail stocks” investors may face huge losses
Zhitong Finance APP learned that on Friday, Thomas Peterffy, founder and chairman of Interactive Brokers (IBKR.US), warned that investors in “retail stocks” such as AMC Cinemas (AMC.US) may face huge losses.
AMC cinema closed down 6.68% on Friday, and fell more than 12% after the market. The stock rose more than 80% this week. Wall Street Bank has previously restricted the trading strategy of hedge funds on “retail stocks”.
Peterffy said that these stocks have attracted more young investors to join in, but they may learn a difficult lesson in the process. Peterffy said: “The first time I opened a brokerage company, I lost all my money, the second time I almost lost all of my money, and since then, I have made a lot of money.”
Peterffy added: “They are here to invest. Because of their enthusiasm for stocks, inadvertently, new investors will learn how to invest in the market. I always think that the first trade of a novice investor is best to lose money.”
Peterffy estimates that there are approximately 15,000 accounts on Interactive Brokers, valued at approximately US$1.2 billion, which are long positions in AMC, approximately 5,000 and approximately US$400 million are short positions. He said that the game station (GME.US) may also have the same ratio.
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