AMC Entertainment (NYSE:CMANYSE:MONKEY) shares slide on Thursday as investors react to news that the Securities and Exchange Commission (SEC) does not prohibit payment for order flow (PFOF).
This has upset APE stock traders as they believe the model allows institutional traders to allegedly manipulate stock prices. APE is a secondary stock created by AMC Entertainment following its success with retail marketers with the same moniker.
Investors will note that the PFOF is the most used by Robin Hood (NASDAQ:HOOD) and other similar commercial services. It allows market makers to share profits from sales made by retail traders. This is what allows HOOD to offer no fees on its transactions.
PFOF could still see changes
While the SEC has no plans to ban PFOF, it looks like other rule changes could come into effect. This can make the practice less profitable. It is unknown if this would deter Robinhood from using it.
All of this news about potential PFOF changes has APE, AMC and HOOD shares in motion today. As of this writing, all three stocks are down. This includes a decline of 12.6% for APE, a decline of 8.3% for AMC and a decline of 1.7% for HOOD. However, HOOD stock was the only one of these to start the day higher before falling below yesterday’s closing price.
Investors looking for information on the latest stock market news will want to keep reading!
InvestorPlace has all the latest stock coverage information traders need to know for Thursday! This includes everything that happens with Canou (NASDAQ:GOV), HOOD, and Accenture (NYSE:ACN) shares. You can read all this news on the following links!
More Thursday stock market news
As of the date of publication, William White had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.