Welcome back to the channel everyone today, i want to dispel some fud and talk about why a share recount won't work. Then i also want to talk about what will work and what will cause the amc squeeze so stay tuned and let's make some money, and now i want to dive straight in with the key information. So there's a tweet here from tony dinaro. It says if you're still here a year later, asking for a new share count or a share recount, you aren't asking the right questions.

Share, counts are by process design going to report. Surprise the number of legally issued shares now. I think this is something really really important to touch on and talk about. I've seen a lot of tweets recently and even some videos recently asking for adam aaron to perform a share recount saying that if we get 10 of the votes, then adam aaron has to do what we want and perform that share recount or we can vote him Out now a i think this is a terrible, terrible idea to vote out adam aaron, just because he won't do a share recount and at the end of the day, a share recount won't help us.

So if anything he's only really doing us a favor. So today i want to talk about why a share recount won't help us because, as tony says, by process design they're going to report the number of legally issued shares and then also talk about what will help now. Firstly, let's cast our minds back to me and june when the previous share count was performed. Adam aaron then reported on that share count with the following tweet.

He said many of you continue to be concerned about the amc share count. In early june, we announced an all-inclusive share count total of 530 million legally issued shares. So exactly what adam aaron has done here is count the legally issued shares and he hasn't counted a single synthetic now. Obviously, we knew that there was 513 million legally issued shares and i don't think anyone in the world has been debating that everyone knows there's 513 million legal shares.

But what we're confused on is how many illegal synthetic shares there are, and he says precisely zero new legal shares have been issued by amc since then, which again, i don't think, was up for debate and he says as to the existence of so-called fake or synthetic Shares or the naked short selling of amc, we are unaware of any information validating these theories and the reason why they're unaware is because amc and adam aaron don't know they don't know how many synthetic shares there actually are. So why is it that adam aaron doesn't even know how many synthetics are out there for amc right now? Surely, as a ceo, that should be part of his job to know how many shares legal or synthetic are out there trading right right now, you can currently get a free share of amc. On top of the usual five free shares, valued up to 3 500 each when you sign up with moomoo using the link in the description below mumu, is also a brilliant commission. Free broker that doesn't make its money from payment for order flow.

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So, let's go through the actual announcement from the july 29th, 2021 shareholder meeting, or i guess the announcement that was issued ahead of that shareholder meeting. So this is the exact announcement that was released by amc and filed with the sec word for word. So back in july 29th, there was 501 million legal amc shares trading or other transactions relating to the shares, such as share borrowing. Derivatives such as put and call options and divorce puts and married puts and short selling do not impact the number of legal shares entitled to vote at the shareholder meeting so straight off the bat all of those synthetic shares and failed to delivers that are hidden inside The divorced puts aren't going to be included in this amc share count because the amc share count only counts legal shares and it does not count any kind of derivatives or divorced puts, and it says the company, so amc and adam aaron does not have record or Have access to information regarding any share lending or any short selling transactions other than what is publicly available from third-party providers like ortex or s3 partners, for example? So therefore, adam aaron and amc have no further information on the short selling of amc other than what all text shows, which is obviously also basically nothing.

Amc has received. A high number of inquiries regarding so-called synthetic shares and fake shares. Amc has no reliable information about this. Therefore, amc can't find any information or doesn't have access to that information on illegal synthetic shares.

Amc and adam aaron only maintain records regarding the shares it has legally issued and which are outstanding. Therefore, adam aaron and amc don't track illegal synthetics. They only track the legal shares asking adam aaron to do a full share recount and to count. All of the synthetic shares is like going to your local walmart and asking the local shop assistant or the till boy, to tell you exactly how many chocolate bars are in every single walmart across the united states.

Sure that shop assistant may be able to go and count the chocolate bars that are in that specific walmart store, but they're, obviously not going to have any clue about how many chocolate bars are in every single walmart in the entire us. So why is it that adam aaron and amc don't know how many synthetics there are? Well, it's all to do with market mechanics and how the market really works. This here is a brilliant thread by pringle kitten. That explains exactly how it all works.

He says part one in recent weeks. I've noticed a lot of conundrum about what the community should do on meme stocks. It boils down to a severe lack of knowledge on how market structure works. He says when we're referring to level 2 or level 2 data, we're referring to the public list of all pending orders on the exchanges, the nasdaq, the new york stock exchange and others.

He says level 1 information just shows you the best bid or ask at any one time according to the mbbo, including the last price traded. This is on the lit market, so obviously level. One data shows you the current price of amc level. Two is that little list that shows all of the close bids and all of the close asks and he says, consider the lit exchanges like we're going into walmart.

It looks like a marketplace where we could clearly see what's on the shelves, with brokers using payment for order flow as a business model. The bids are effectively re-routed towards a market maker which uses otc venues to trade against them. This is level three where most people do not have access now. I think there's also a slight difference between having access to level three markets and also having access to the data in level three markets.

So hedge funds do have access to level 3 markets to perform over-the-counter trades, but even hedge funds don't have access to level 3 information on level 3 market makers have the right to engage in naked short selling securities for the sake of providing liquidity. This is technically allowed by the law, and it's something we've known for months when a market maker doesn't have the supply in their inventory, to give to retail. When bids are rerouted, they legally naked shorter position to retail, giving them the stock at the price they won. But brokers have absolutely no idea the size of a market maker's inventory because that's level three information.

They are solely interested into re-routing bids to generate cash flow through payment for order flow, so krinkle says do we know there is existence of naked shorts in the market? Yes, this is technically allowed by the law for market makers for the sake of liquidity. Do we know that there's abuse of naked short selling - and he says it's very likely, but it is still legal and he says, can we quantify the exact number of naked shorts issued by market makers and he says no, that's level 3 information. No one can do the math and he says therefore, a share recount doesn't work because it only applies to shares issued by the company, not those by market makers operating on level 3, which are essentially debt obligations. And that's why amc and adam aaron don't know how many synthetic shares there are.

The only person that knows how many synthetic shares are in the level 3 is the market maker that issued those synthetic shares, and on top of that, because even the market makers don't have access to the trades in the level 3 market, even one market maker doesn't Know how many synthetic shares another market maker has created and therefore, even though citadel know how many synthetic shares they have even citadel, don't know how many synthetic shares virtue have, for example, and obviously adam aaron and amc - don't have a clue on how many synthetics, either Of those market makers have now, i need to do a little bit more research in terms of what the reporting of these over-the-counter transactions are as to whether these transactions are actually reported to finra and the sec and the dtcc, because potentially, even though adam aaron doesn't Know how many synthetics there are. Maybe the sec does keep a record of all of these over-the-counter transactions and all of these level three transactions, and maybe they know how many synthetics there are. So what will cause the amc squeeze? Well, this poster on reddit posted this photo and asked the question: when apes learn more about in the money and weigh in the money, call options and gamma squeezes. What will happen? Will it be a repeat of the january 2021 meme stock run? You can see at the moment citadel are very much stuck between a rock and a hard place.

Do they short amc below 20, but risk massive massive dip buying by us apes citadel are trying to do absolutely everything they can to convince apes to sell their amc. Shares and convince apes to sell their call options and obviously they're also trying to push those call options out of the money, because they know that they will cause the squeeze but they're playing a risky game because to get those options out of the money they have To push amc down lower, which could cause massive dip buying as i've spoken about in my recent videos, we know that massive massive amounts of call option, buying and call option exercising providing they're in the money is what will cause the amt squeeze obviously buying the 145 Dollar way out of the money options that expire, this friday isn't going to cause the squeeze, because it's not going to cause the hedges to have to hedge for these options or the market makers to hedge for the options, but obviously buying options that are in the Money or weighing the money will cause these hedges and market makers to have to hedge for the options they've sold us and if they don't hedge for them, when we exercise them, they have to buy us the shares and they suffer massive massive losses, and i also Want to quickly touch on some research done by amc bigems, which are unregulated hedge funds or family offices that manage around 7 trillion in assets on may 6. 2021. In testimony before the house financial services committee, the sec chair gary gensler, noted the archagos situation.

He said the sec has identified amendments to the family office rule as one of its regulatory priorities for 2021, but so far in 2021 and in 2022 no such amendments have been made. So if you didn't already know, there's around 10 000 family offices worldwide and around 4 000 of those are based in the us, and they have tons and tons of exemptions, and they also don't even need to file 13 f's and 13 ds. These family offices are effectively exempt from the rules and regulations, and this definitely needs to change. These family offices can have as much leverage as they like.

They don't have to have tons and tons of cash in cash collateral and they don't have to submit these 13 fs. They don't have to report how many shares they're shorting and they don't have to report how many shares they own through leveraged derivatives, for example. This way, family offices can take on massive massive amounts of risk and don't have to report it. They also don't have to report what they're doing so they can be performing many illegal activities and they don't have to report it and nobody's ever gon na know, while naked shorting is illegal.

Family offices can technically naked short shares because they never have to report and they will never get found out. Clearly, family offices was something that was alerted back in may of 2021 and in march, when arcados went under, but it's something that seemingly been brushed under the rug and been forgotten about. I also do think that family offices are something that needs massive massive regulation and it's something i also want to look into further and do some more research and due diligence for you guys guys be sure to. Let me know down in the comments below what you think about a share recount.

Do you think it's something adam aaron should do or do you think it's pointless and won't really help with the synthetic shares and, as always guys if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to the channel and ding that notification bell, because that way, you'll be alerted when i upload a new video cheers.