How To Buy AMC Stock (2024)

In early 2021, retail investors sparked the meme stock frenzy that dragged AMC Entertainment Holdings, Inc. (AMC) back from the brink of bankruptcy. It looks like the meme stock investors who held on since then could see a big payday.

There are reports that Amazon.com is exploring a potential acquisition of AMC for as much as $4 billion, a significant premium to its current valuation. Reportedly the movie chain would support Amazon Prime movies for awards contention and possibly aid in cross-selling services like grocery delivery.

Shares of AMC are trading around $5 a piece as of now, nearly 90% below their meme stock craze highs. But if you’re interested in buying the shares in light of the Amazon news, we’ve got you covered.

How to Buy AMC Shares

1. Open a Brokerage Account

Before you can buy or sell AMC stock, you’ll need a brokerage account. When selecting an broker, consider the following features:

• Account minimums. Some brokers require investors to fund their account with thousands of dollars, while others allow you to get started with as little as $1.
• Fractional shares: Instead of buying a whole share of stock, some brokers offer fractional shares where you can buy a slice of stock proportional to the amount of money you invest. For example, if AMC’s price is $18.52 and you invest $1, you’d be buying 0.054 shares of AMC stock.
• Account types: Within your brokerage you’ll need to decide which kind of account to open. Brokers usually have several options including individual retirement accounts (IRAs) for retirement purposes or taxable brokerage accounts for shorter-term goals.

To find a broker, check out our list of the best investment apps and leading online brokers.

2. Decide How Much Money to Invest in AMC

When thinking about how much to invest, ask yourself these questions:

• How does AMC fit into my investment portfolio? Experts advise against investing in solo stocks. Instead, they suggest investing in many companies across different industries to minimize risk. Even if you believe AMC has a solid opportunity for growth, it’s a good idea to spread any large investment across a number of different stocks.
• What is my investment plan? Think about your timeline and how you plan to invest. You may plan on holding onto your shares for a few months or for several years. Depending on your goals, using dollar-cost-averaging and investing small amounts on a regular schedule can help reduce your overall risk.
• How much cash do I have available for investing? Make sure your basics are covered first, including living expenses, debts, emergency savings and retirement funds, before settling on an investment amount.

3. Do Some Background Research on AMC

Before investing in any company do your homework. AMC—which was founded in 1920—has a long history and has experienced significant fluctuations over time.

AMC is a publicly-traded company, so you can view financial statements, regulatory filings and annual reports on its investor relations page. Within the reports you’ll find information about financial performance and plans for the future, as well as information about risks and challenges facing the company like theater chain competitors, the rising popularity of at-home streaming services and continued concerns about COVID-19.

4. Place an Order for AMC Shares

If you decide to buy AMC stock, go to the broker’s trading portal and enter AMC’s ticker symbol—AMC—and the number of shares you want to buy. If the broker offers fractional shares you can enter the dollar amount you want to invest.

You can also usually designate if you want to place a limit or market order. Market orders go through immediately during normal trading hours at the current price, while limit orders are processed only when the stock reaches a particular price that you specify.

AMC is traded on the New York Stock Exchange (NYSE), the largest stock exchange in the world. The NYSE’s main trading hours are ​​Monday through Friday from 9:30 a.m. until 4:00 p.m. Some brokerages offer extended trading hours before and after the market opens and closes.

5. Have an Exit Strategy

Whether you intend to hold onto your AMC shares for years or for a short period, when it’s time to sell, just enter AMC’s ticker symbol and the amount you want to sell in your broker’s trading portal.

Whatever your plans, consider meeting with a tax professional to discuss your tax liabilities. Selling stocks at a profit means you may incur capital gains taxes, and a tax professional can help you plan for and minimize a future tax bill.

Other Ways to Invest in AMC

If investing in a single stock feels too risky, you’ll also get exposure to AMC by investing in index funds or exchange-traded funds (ETFs). These funds contain hundreds of companies, so opting for index funds or ETFs rather than individual stocks gives you more diversification within your portfolio.

There are over 70 ETFs that include AMC as part of their holdings. The biggest holder is the iShares Russell 2000 ETF (IWM), an ETF that gives investors access to 2,000 small-cap domestic stocks.

Alternatively, you can choose an ETF that is more targeted, such as the SoFi Social 50 ETF (SYFY). This fund is composed of the top 50 U.S. stocks listed on SoFi Invest. As of April 13, 2022, AMC was the third-largest holding within the fund. Other holdings include household names like Tesla, Apple and Amazon.